European stocks rise as STMicroelectronics' forecasts lift tech stocks

​European shares opened higher on Tuesday as strong forecasts from chipmaker STMicroelectronics lifted technology stocks, while investors awaited a key inflation ‌report later in the day for insights into how the Mideast conflict has affected the euro zone economy. The pan-European STOXX 600 index rose 0.7% to 625.20 points by 0715 GMT.

​European shares opened higher on Tuesday as strong forecasts from chipmaker STMicroelectronics lifted technology stocks, while investors awaited a key inflation ‌report later in the day for insights into how the Mideast conflict has affected the euro zone economy.

The pan-European STOXX 600 index rose 0.7% to 625.20 points by 0715 GMT. ‌Technology stocks led sectoral gains with a 2.4% rise. Chipmaker STMicroelectronics rose 9.8% to ‌hit 65.1 euros, its highest since September 2000, after lifting revenue targets for its data centre business, signalling strong demand from the AI boom.

Other AI-related stocks such as Infineon and Schneider Electric added 5.2% and 2.4%, ⁠respectively. Lebanon ​announced a partial ⁠ceasefire between Hezbollah and Israel on Monday following a brief escalation of hostilities, which also aided risk sentiment.

Crude ⁠prices eased about 1% as investors pinned hopes on U.S. President Donald Trump's remarks that talks ​with Iran were ongoing, despite a report saying that Tehran had suspended indirect negotiations ⁠with Washington. Still, at $94 a barrel, energy prices will likely remain painful, analysts said.

A report on euro zone ⁠consumer ​inflation, due later in the day, is expected to show consumer prices rose 3.2% in May on an annual basis from the month before. Traders expect the European ⁠Central bank to hike interest rates by 25 basis points when it meets next week, ⁠according to data compiled ⁠by LSEG.

Among individual shares, Abivax fell 27% after the French drugmaker published the late-stage trial results for its inflammatory bowel drug.