On November 11, European stock markets rose broadly, with the pan-European STOXX 600 index gaining 0.4% and approaching its all-time high.
European companies delivered solid third-quarter earnings overall, and results released by U.S. artificial intelligence cloud computing firm CoreWeave eased market worries about a slowdown in AI infrastructure investment, driving a rebound in technology stocks and offsetting pressure from higher-than-expected U.S. inflation and growing expectations of a Federal Reserve rate hike.
Germany's DAX index climbed 0.9%, France's CAC 40 rose 0.7%, and the UK's FTSE 100 gained 0.8%.
Technology stocks were the main driver of the day's gains in European markets.
CoreWeave had previously reported revenue that beat market expectations, and demand for AI cloud computing services remained strong, easing investor concerns about financing risks in AI infrastructure and the sustainability of capital expenditure.
Boosted by this, European semiconductor stocks rose collectively, with BE Semiconductor and ASM International both gaining more than 4%, ASML up about 2.8%, and STMicroelectronics rising roughly 4%.
However, the outlook for U.S. monetary policy continued to weigh on the market.
U.S. October consumer price index (CPI) growth exceeded expectations, and combined with previously released strong employment data, this further strengthened market expectations that the Federal Reserve will raise rates by at least 25 basis points in December, with some investors beginning to consider the possibility of a one-time 50 basis point hike.
In addition, international oil prices rebounded on Wednesday from a two-month low touched in the previous session.
The market is watching for signs of a possible easing of U.S.-Iran tensions on one hand, while still worrying that attacks on commercial ships in the Strait of Hormuz could disrupt supply on the other.
Investors will also focus on a speech by European Central Bank President Lagarde later in the day to assess the outlook for European monetary policy against the backdrop of weak European economic growth, volatile energy prices, and stronger U.S. inflation.
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