European shares steady as tech gains offset Middle East caution

Published Mon, Jun 29, 2026 · 05:10 PM

EUROPEAN shares were steady on Monday, underpinned by gains in technology stocks, while investors mulled over the durability of an interim ceasefire in the Middle East after the United States and Iran agreed to halt the latest bout of hostilities.

The pan-European Stoxx 600 index was steady at 636.43 points by 0800 GMT, with technology stocks leading sectoral gains with a 1.4 per cent rise.

Nagarro soared 91 per cent after India’s Persistent offered 81 euros per share to acquire the AI-led digital engineering firm.

The broader tech sector rose after last week’s selloff, when it posted its biggest weekly fall since mid-March. Chip stocks such as Soitec jumped 7.2 per cent, STMicroelectronics added 3.6 per cent.

Europe’s exposure to AI stocks is much smaller than the US and Asia, where tech-driven rallies pushed regional benchmarks to record highs several weeks earlier.

“For us to start upgrading European stocks, we need to start seeing AI-driven productivity have an impact on European earnings. So far, we’re not there yet,” said Florian Ielpo, head of macro and multi-asset portfolio manager at Lombard Odier Investment.

Still, the European tech sector has benefitted from the global AI rally, putting it on track for the biggest quarterly gains on the Stoxx 600. It also outperforms the US S&P 500 tech sector at a time when worries about debt-backed spending concerns weigh on Asian and Wall Street stocks.

Meanwhile, crude prices edged up 0.2 per cent to US$72 a barrel as investors assessed shipments through the Strait of Hormuz, with a tenuous interim ceasefire prevailing between the US and Iran. The countries traded fire through the weekend before agreeing to halt hostilities and renew talks.

The truce has prompted bullish outlooks from brokerages. JPMorgan was the latest to lift its year-end target for European equities.

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Focus will be on the European Central Bank’s Sintra conference, where speakers include Federal Reserve Chair Kevin Warsh and ECB President Christine Lagarde.

Traders are pricing in one more ECB rate hike of 25 basis points later this year, LSEG-compiled data showed.

British American Tobacco said it will cut 5,500 jobs globally as it pushes ahead with its AI-driven transformation programme. Shares were down 1.4 per cent in early trading.

Dutch tech investor Prosus gained 2.9 per cent after reporting an 84 per cent rise in full-year adjusted core profit.

Private equity firm Bridgepoint rose 9.3 per cent after agreeing to acquire US real estate investment platform Kayne Anderson Real Estate for an enterprise value of US$1.39 billion. REUTERS