European Stocks Approach All-Time High on Tech Rally and Declining Oil Prices

European Stocks Gain, Edging Closer to Pre-War Record High

European stocks rose on Thursday, bringing the region's benchmark closer to its pre-war record high. The Stoxx Europe 600 index was up 0.3% as of 9:22 a.m. in Paris. This move brings the index within 0.6% of its February peak.

The technology sector was a major contributor to the gains, with ASML Holding NV and Infineon Technologies AG leading the way. The sector's performance was influenced by the strong rally in Micron Technology Inc., which topped $1 trillion in market value in the US. The energy sector, on the other hand, was among the biggest laggards, with Brent crude oil prices dropping 2% to around $97 per barrel on optimism about a potential peace deal between the US and Iran.

The region's strong first-quarter earnings season has supported European shares, while lower oil prices have eased concerns about inflation and aggressive rate hikes from the European Central Bank. However, Europe has less exposure to technology and AI-linked stocks, which have driven gains in the US and Asia.

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The autos sector also rose after data showed European car sales increased for the third consecutive month in April, with consumers continuing to purchase more electric and hybrid models. Volkswagen AG, Stellantis NV, and Ferrari NV gained more than 1% in response to this news.

Akzo Nobel NV surged as much as 17%, its highest increase since 2017, after rejecting a cash offer from Japanese peer Nippon Paint and US paintmaker Sherwin-Williams Co.