European shares opened higher on Tuesday, maintaining momentum that has propelled the pan-European STOXX 600 toward its largest quarterly rise in more than five years. At 08:04 GMT the benchmark index stood at 639.77 points, up 0.6% on the day. For the quarter the index has risen 9.7%, marking its strongest quarterly performance since October 2020 and extending a run of monthly gains to a third consecutive month.
Technology stocks led the advance, climbing 1.7% in early trade and positioning the sector for its best quarterly return since October 2001. The scale of the move reflects robust demand tied to artificial intelligence infrastructure, which has been a key market theme this quarter. Notable movers in the technology segment included lithography specialist ASML, which rose 3.33% on Tuesday, and semiconductor names STMicroelectronics and Infineon, which added 3% and 2.7%, respectively.
Energy-related developments also influenced the market. The article notes signs of easing tensions in the Middle East, a dynamic that coincided with oil prices slipping back to levels seen before the Iran-related conflict intensified. For energy-deficient Europe, lower oil prices represent a material input-cost development and provided support to broader risk sentiment during the quarter.
Within industrials and capital equipment, shares of Siemens Energy gained 5% following a pre-close quarterly earnings call on Monday during which the company reiterated strong demand trends for its AI-related equipment. That comment, and the market response, underlines how AI-related demand signals have reached beyond pure technology hardware into capital-goods suppliers.
The healthcare sector participated in the rally, rising 0.9% overall. Abivax led sector movers after jumping more than 20% when the drugmaker reported positive topline results for its obefazimod study. That company-specific development contributed to the healthcare sector's daily gain.
Taken together, the market action on Tuesday reflected a combination of cross-sector demand for AI-related products and services, easing geopolitical pressures that influenced energy prices, and positive corporate updates in healthcare and industrial equipment. These elements combined to keep the STOXX 600 on course for a notable quarterly advance.