In early trading, the pan-European Stoxx 600 index rose 0.28%, supported largely by gains in the technology sector. Semiconductor names led advances after TSMC posted record quarterly results, reinforcing investor confidence in sustained demand for artificial intelligence-related chips.
Dutch semiconductor equipment giant ASML jumped as much as 7% shortly after the open before paring gains to around 5%. The move followed TSMC’s report of a 35% year-on-year increase in fourth-quarter profit, beating market expectations and setting a new record on the back of strong AI chip orders. Other chip-linked stocks also surged, with ASM International climbing nearly 10% and BE Semiconductor advancing more than 5%.
Outside technology, European banking stocks were in focus amid renewed speculation around merger and acquisition activity. UniCredit shares gained 1.1% after the Italian lender dismissed reports suggesting it was planning to acquire a stake in rival Banca Monte dei Paschi di Siena, describing the claims as “speculative” and “pure invention.” Analysts nevertheless expect M&A activity in the European banking sector to accelerate this year, with Italy widely viewed as a potential hotspot.
Geopolitical developments also remained on investors’ radar. Markets digested news from a high-level meeting involving officials from the United States, Denmark and Greenland, which reportedly ended with fundamental disagreements over the ownership of the Arctic island. U.S. President Donald Trump has repeatedly described Greenland as strategically vital to U.S. national security and has intensified rhetoric around acquiring the territory, while Danish officials insist discussions will continue despite the impasse.
Attention was also focused on Iran, after President Trump threatened military action if executions of detained protesters went ahead following recent unrest. His tone softened later on Wednesday, however, after assurances that executions had halted. Iran reopened its airspace early Thursday following a temporary closure.
On the corporate front, luxury goods group Richemont reported ahead of the opening bell. The owner of brands including Cartier posted a 4% rise in third-quarter sales to €6.4 billion, with growth accelerating to 11% at constant exchange rates. Strong performances were recorded in several European markets, notably the U.K. and Italy, though Richemont shares were little changed in early trade.
Economic data releases added further context for markets. U.K. gross domestic product grew by 0.3% in November, exceeding expectations for a modest 0.1% expansion. Despite the stronger reading, the pound dipped following the release, trading around $1.3436. Analysts cautioned that the near-term outlook remains challenging, with ING forecasting slower growth of around 0.9% next year as government spending eases and investment confidence remains subdued.
U.K. government bonds edged higher, with yields on 2-year and 5-year gilts rising by around three basis points, while the benchmark 10-year yield was marginally higher.
Later in the session, investors are set to assess Spanish and French inflation figures, alongside euro zone trade balance data. Meanwhile, U.S. stock futures were little changed overnight, pointing to a cautious start on Wall Street.