European shares gain on tech optimism; Mideast developments in focus

EUROPEAN shares rose on Thursday, as artificial intelligence-driven optimism offset lingering concerns about a deadlock in US-Iran peace talks, while a high stakes US-China summit was also on investors’ radar.

The pan-European Stoxx 600 was 0.4 per cent higher at 614.05 points, as of 0703 GMT, after rising 0.8 per cent on Wednesday. Some local markets were closed due to a public holiday, likely keeping trading volumes light.

Official data showed Britain’s economy expanded unexpectedly in March by 0.3 per cent. The blue-chip FTSE 100 was up 0.2 per cent.

Despite recent gains, European equities remain below pre-war levels, with inflation data highlighting the impact of higher oil prices on the import-dependent region.

European Central Bank’s chief economist Philip Lane became the latest member of the bank to say interest rate hikes might be required to deal with inflation.

Money markets currently price in more than two ECB rate increases this year, with the first one expected in June.

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Among early movers, Burberry shed 4 per cent after the luxury brand reported fourth-quarter sales in line with expectations, as the Iran conflict dampened tourism and spending. REUTERS