European Markets Rally as STMicroelectronics Surges Before CPI

European shares opened higher on Tuesday, with the pan-European STOXX 600 up 0.7% at about 625.20 points by 0715 GMT. The technology sector rose 2.4%, leading gains across the market.

STMicroelectronics raised revenue targets for its data-center unit after reporting continued demand for chips tied to artificial intelligence. The stock climbed 9.8% to 65.10 euros, its highest level since September 2000.

Other companies linked to AI-related demand advanced. Infineon gained 5.2% and Schneider Electric rose 2.4%.

Market attention focused on eurozone consumer inflation data due later in the day. The May reading is forecast at 3.2% year on year. Traders are pricing in a 25-basis-point European Central Bank rate increase at next week’s policy meeting.

Investors also monitored developments in the Middle East. Lebanon announced a partial ceasefire between Hezbollah and Israel following a recent flare-up. Oil prices fell about 1% after comments from U.S. President Donald Trump and reports that Tehran engaged in indirect talks with Washington, while crude remained around $94 per barrel.

French drugmaker Abivax fell roughly 27% after publishing late-stage trial results for its inflammatory bowel disease treatment.

Technology strength offset concerns about high energy costs in the early session. Markets awaited the inflation report and the European Central Bank meeting next week.