European equities traded higher on Tuesday, putting the STOXX 600 on course for its best quarterly performance in more than five years as investor enthusiasm for artificial intelligence and easing geopolitical tensions in the Middle East continued to support market sentiment.
The pan-European STOXX 600 rose 0.6% to 639.77 points by 08:04 GMT. The benchmark index is set to record its third consecutive monthly advance and has gained 9.7% during the quarter, marking its strongest quarterly return since October 2020.
Technology sector drives rally
Technology shares climbed 1.7% and were on track to deliver their strongest quarterly performance since October 2001, reflecting sustained demand for artificial intelligence infrastructure. The sector is also on course to outperform its US technology peers over both the month and the quarter.
Among the leading gainers, semiconductor equipment manufacturer ASML (EU:ASML) advanced 3.33%, while chipmakers STMicroelectronics (BIT:STMMI) and Infineon (TG:IFX) rose 3.0% and 2.7%, respectively.
Siemens Energy extends gains
Shares in Siemens Energy (TG:SIE) gained 5% after the company reaffirmed robust demand for AI-related equipment during its pre-close quarterly trading update on Monday.
Investor sentiment has also been supported by signs of easing tensions in the Middle East, with oil prices retreating to levels seen before the conflict involving Iran, helping reduce energy cost concerns across Europe.
Healthcare sector boosted by Abivax
In the healthcare sector, Abivax (EU:ABVX) surged more than 20% after announcing positive topline results from its obefazimod clinical study.
The broader European healthcare sector rose 0.9% during the session.
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