Tech supports STOXX as chips extend recovery
SMH•European stocks open muted as tech leads
Europe got off to a muted start on Monday, with the STOXX 600 .STOXX hovering around flat after Friday's record close as investors kept an eye on geopolitical risks.
Tech .SX8P rose 1%, providing the biggest uplift to the pan-European index, which was up less than 0.1%.
Chip stocks extend recovery on AI demand focus
Chip stocks extended a recovery from multi-month lows hit during July's turbulent trading when investors unwound leveraged positions linked to the AI infrastructure theme, bringing back the focus to short-term fundamental strength linked to AI demand.
Following gains in South Korea's KOSPI .KS11 and Taiwan's benchmark index .TWII, European chip heavyweight ASML ASML.AS rose more than 2%, although it remains over 13% below its record high reached earlier this year.
Nvidia NVDA.O shares gained about 1% in Frankfurt ahead of earnings later this month, while Nasdaq futures advanced 0.5%. Most other sectors in Europe traded lower, with media stocks .SXMP leading declines and falling about 1% after a recent rebound in the battered sector.
