European Stocks Advance as Technology Shares Lead Market Higher: DAX, CAC, FTSE100

AI optimism lifts European equity markets

European markets traded higher on Tuesday, supported by a strong recovery in technology stocks as investor confidence in artificial intelligence-related companies improved.

With oil prices retreating to levels seen before the recent Middle East conflict, investors continue to expect that the European Central Bank (ECB) will be able to keep interest rates unchanged in the near term.

Speaking in Sintra, Portugal, ECB Chief Economist Philip Lane said the secondary effects of higher energy prices are likely to take time to emerge and indicated policymakers are not prepared to commit to a specific interest-rate path.

Falling oil prices support market sentiment

Crude oil prices extended their decline and remained on course for a second consecutive monthly loss, despite conflicting comments over whether the United States and Iran would hold talks in Qatar on Tuesday.

Among the major European indices, Germany’s DAX rose 1.3%, the UK’s FTSE 100 gained 0.8%, and France’s CAC 40 advanced 0.2%.

Sterling gave back earlier gains against the U.S. dollar after revised figures from the Office for National Statistics confirmed the UK economy expanded as initially estimated during the first quarter, driven largely by the services sector.

The economy grew 0.6% quarter-on-quarter in the first three months of the year, following revised growth of 0.1% in the fourth quarter.

Technology sector outperforms

Technology shares were among the strongest performers, with Infineon (TG:IFX), STMicroelectronics (BIT:STMMI) and ASML Holding (EU:ASML) posting solid gains.

Elsewhere, French pharmaceutical company Sanofi (EU:SAN) traded little changed after reporting that Nexviazyme achieved all primary and secondary endpoints in a Phase III trial involving the infantile form of Pompe disease.

British travel and insurance group Saga (LSE:SAGA) declined after stating that trading remained “in line with expectations” during the first four months of the year.

Meanwhile, supermarket operator J Sainsbury (LSE:SBRY) advanced after reaffirming its full-year profit guidance.

International Workplace Group (LSE:IWG) also moved sharply higher after announcing a $50 million increase to its 2026 share buyback programme.