European shares end at more than one-month high on tech boost

Fri, 22nd May 2026 17:29

* STOXX logs biggest weekly gain in seven; tech shares jump

* France's Macron to announce ⁠support for quantum computing, advanced microchips

* Puig slumps after merger talks with Estée Lauder end

* Julius Baer falls on disappointing net new money inflows (Updates after markets close)

May 22 (Reuters) - European ‌shares finished at their highest in over a month on Friday, led by technology stocks as risk sentiment got a lift on ⁠expectations that a deal to end the Middle East conflict could be ⁠near.

The pan-European STOXX 600 ended 0.73% higher at 625.12 points and logged its biggest weekly gain in seven.

U.S. Secretary of State Marco Rubio said that there was some progress towards an agreement with Tehran but more work is required, the latest development in the U.S.-Iran impasse that has ensued since Washington ‌suspended bombing in a fragile ceasefire in early April.

Key disagreements between Tehran and Washington involve Iran's uranium stockpile and controls on the Strait of Hormuz. Reflecting the broader uncertainty, crude prices rose 1% to $103 a barrel.

Analysts expect a deal that includes opening the strategic waterway to lift European equities that have lagged peers, given the region's dependence on oil imports that have become costly since the war.

"We are neutral on Europe and euro zone equities, given their sensitivity to higher energy ‌costs, while we view the more defensive Swiss market and European healthcare more favourably," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

AI optimism that has driven ‌global indexes to record highs also helped the European tech index rise almost 3.2%. Chip giant Nvidia outlined strong forecasts earlier this week, suggesting strong demand for tech infrastructure.

Among European chip stocks, Infineon added nearly 8%, STMicroelectronics gained 5.2% and ASML rose 4.7%.

Also aiding the sector was French President Emmanuel Macron's comments that the government will invest an additional €1 billion ($1.16 billion) in its quantum ‌strategy and €550 million to support the microelectronics sector.

Among laggards, Puig tumbled 13.4% after the Spanish perfumery ended merger talks with U.S. cosmetics maker Estée Lauder.

Julius Baer fell 6.9% after the Swiss bank's net new money inflows came in below expectations.

On the data ⁠front, German ⁠consumer sentiment recovered heading into June, while a separate reading confirmed that the economy ‌grew by 0.3% in the first quarter of 2026. Germany's DAX led gains among regional indexes with a 1.1% rise.

Still, other data reports have suggested price pressures are heating up. Europe's economy commissioner Valdis Dombrovskis became the latest official to say the European ‌Central Bank would need to react to rising inflation.

Money markets price in at least two ECB interest rate hikes before the end of the year.

Among other companies, Cartier owner Richemont reported better-than-expected fourth-quarter revenue. Shares were volatile and ended marginally lower. (Reporting by Twesha Dikshit and Johann M Cherian in Bengaluru; Editing by Subhranshu Sahu)