STOXX near peaks as AI trade rolls on

STOXX NEAR PEAKS AS AI TRADE ROLLS ON

European shares got off to a firmer start on Tuesday, helped by gains in miners (.SXPP) and as optimism over the AI trade drove broad gains across chip stocks.

The STOXX 600 TVC:SXXP rose 0.6%, extending its quarter-to-date gain to 9.7% and putting it on track for its strongest quarterly performance since Q4 2020, while keeping the pan-European index near record highs.

The euro zone's blue-chip Euro STOXX 50 VELOCITY:STOXX50 hit a record high, rising 0.7%, underpinned by gains of 3%-5% in Siemens Energy XETR:ENR and ASML EURONEXT:ASML.

There were pockets of weakness, however, with software stocks and other perceived AI losers coming under pressure.

Among them, customer services firm Teleperformance EURONEXT:TEP fell 11% after U.S. peer Concentrix NASDAQ:CNXC cut its profit forecast, citing growing financial pressure on clients.

SAP XETR:SAP, Europe's No.1 software company, slipped 1%.

AbivaxEURONEXT:ABVX soared about 30%, boosting healthcare (.SXDP) after the French drugmaker addressed safety concerns over its experimental ulcerative colitis treatment obefazimod.

Strength in miners drove London's FTSE 100 CURRENCYCOM:UK100 up 0.4%, as copper prices rose.