European stocks rose broadly on Thursday as investors closely followed developments from U.S. President Donald Trump’s high-profile visit to China, while continued enthusiasm over artificial intelligence supported technology stocks.
By 10:05 a.m., the pan-European Stoxx 600 index was up 0.4%, Germany's DAX was up 1.1%, and France's CAC 40 was up 0.6%, while the UK's FTSE 100 was largely flat. Shares of regional technology companies such as ASML and STMicroelectronics advanced, echoing the rally in the tech sector on Wall Street on Wednesday.
Trump and his Chinese counterpart Xi Jinping concluded the first round of talks during a two-day summit, with Xi telling state media that negotiations, particularly on trade, were making tangible progress. However, he indicated that the US stance on Taiwan could negatively impact relations between the two countries.
Markets were awaiting any updates on potential discussions regarding a war with Iran. Some analysts suggested that Trump might try to persuade China, a major importer of Iranian oil, to act as a guarantor in reaching a lasting peace agreement, though it was unclear whether Beijing would accept such a role.
While leaders and top business figures meet in China, the global economy faces uncertain prospects due to the continued closure of the Strait of Hormuz, the vital waterway off the southern coast of Iran through which about one-fifth of the world's oil supply passes.
Oil prices have been steadily rising. Brent crude futures, the global benchmark, were hovering above $105.00 a barrel, compared to pre-war levels of around $70.00 a barrel. This sharp increase has fueled fears of a global inflationary wave, a trend confirmed by US consumer and producer price data released this week.
Morgan Stanley analysts said in a research note: Higher energy prices are accompanied by slower growth and higher inflation.
Regarding European corporate earnings, announcements continued. At the individual stock level, Burberry shares declined after the luxury clothing retailer's board announced it would not be distributing dividends, citing an uncertain macroeconomic environment for the 2027 fiscal year.
In contrast, Allegro raised its annual forecast for its international unit, sending shares of the Polish e-commerce platform soaring.
