Tech rebound lifts European shares after three-day slide

European shares gained for the first time this week on Thursday, as a rebound in technology stocks tempered lingering concerns about the war in the Middle East.

The pan-European STOXX 600 index rose about 0.8% to 640.88 points. Technology stocks and basic resources were the top gainers, up 2.7% and 3.2%, respectively.

"Despite a slump in business and consumer surveys since the start of the Iran war, economic activity seems to have held up quite well," said Andrew Kenningham, chief Europe economist at Capital Economics.

The advance on Thursday followed three consecutive sessions of declines. Softer inflation and a drop in oil prices in the last few weeks had pushed the STOXX 600 to a record on Monday, but a renewed wave of strikes between the U.S. and Iran shattered the calm.

Markets will now shift their focus to the upcoming earnings season, which could draw some attention away from the geopolitical turmoil.

"Investors have also become a little more immune to developments (in the Middle East), viewing them as part of what has always been a choppy path towards a broader agreement," said Fiona Cincotta, senior market analyst at City Index.

CHIP MAJORS GAIN, SPAIN REBOUNDS

Computer chip stocks Siltronic, Soitec and ASML rose 13.4%, 5.9% and 4.8%, respectively.

Global sentiment was buoyed by a report that said China could allow domestic AI firms limited access to AI leader Nvidia's H200 chips, suggesting demand for AI infrastructure could get a boost.

Spanish stocks outperformed the region, up 1.1% from a three-week low on Wednesday, after U.S. President Donald Trump said Spain was "very generous" after he threatened to halt trade with it.

Meanwhile, crude oil prices were 1.8% lower, also aiding risk appetite.

Healthcare was the worst performing sector, down 1%, led by a 6.2% drop in AstraZeneca after the drugmaker's nerve disease drug Wainua, made in partnership with U.S.-based Ionis, failed to meet the main goal of reducing cardiovascular deaths and recurring heart problems in a late-stage trial.

IT services provider Computacenter jumped 7.2% after saying it expects full-year results to exceed market expectations, helped by strong demand for AI-related infrastructure.

Onshore wind turbine manufacturer Nordex added 4.8% after saying its project orders in the second quarter rose year-on-year to 3,054 gigawatts, boosted by significant orders from the U.S.

Investors are also weighing the interest rate trajectory for the European Central Bank, which raised borrowing costs last month.

The central bank's policymakers were presented with projections showing inflation staying above target into next year despite nearly three rate hikes, accounts of the meeting showed on Thursday.

(Reporting by Tharuniyaa Lakshmi and Johann M Cherian in Bengaluru; Editing by Rashmi Aich and Sonia Cheema)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published July 9, 2026 at 12:19 PM.