• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Chip stocks boost European shares at start of data-heavy week

by January 6, 2025
written by January 6, 2025

By Shashwat Chauhan and Nikhil Sharma

(Reuters) – European shares ticked up Monday as chip stocks advanced following Microsoft (NASDAQ:MSFT)’s bumper AI investment announcement, kicking off a week packed with economic data around the world including inflation readings in Europe and jobs data in the United States.

Europe’s premier index, the STOXX 600 was up 0.2% as of 0918 GMT, taking cues from an upbeat close on Wall Street on Friday. [.N]

Technology led gains amongst the major STOXX sub-sectors, adding close to 3%, with chip stocks such as ASML (AS:ASML), ASMI and STMicroelectronics at the helm of gains.

Semiconductor makers got a boost after Microsoft on Friday said it is planning to invest about $80 billion in fiscal 2025 on developing data centres to train artificial intelligence models and deploy AI and cloud-based applications.

“The demand amid U.S. big tech for AI capability is voracious at the moment, so the expectation is that demand for semiconductor chips will still be extremely strong going through 2025,” said Susannah Streeter, head of money and markets, at Hargreaves (LON:HRGV) Lansdown.

On the downside, food and beverages extended losses after Friday’s drop when the U.S. surgeon general urged cancer warnings for alcoholic drinks, with stocks falling 0.7% on the day.

The data calendar for the week was heavy with inflation readings across Europe slated to be released throughout the week, starting off with a December German inflation reading due later in the day.

On the day, data showed Germany’s service sector experienced a slight uptick last month, while a broader euro zone reading showed overall activity contracted for a second straight month.

This week’s centrepiece would be the December U.S. nonfarm payrolls report due on Friday, a crucial metric in gauging the Federal Reserve’s interest rate path for 2025.

European equities lagged their U.S. counterparts in 2024, as concerns about a slowing economy, political turmoil in Germany and France and the threat of tariffs from the incoming Donald Trump administration made for an uncertain outlook.

Among individual movers, UK’s Spectris (LON:SXS) gained 2.8% after HSBC upgraded its rating on the scientific instruments maker to “buy” from “hold”.

Rolls-Royce (OTC:RYCEY) fell 3.7% after Citigroup (NYSE:C) downgraded its rating on the British engineering company to “neutral” from “buy”, while Unilever (LON:ULVR) eased 1.8% after RBC downgraded its rating on the consumer goods group to “underperform” from “sector perform”.

Trading volumes are likely to improve this week as most market participants would return after two weeks of holiday-affected trading.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Indonesia stocks lower at close of trade; IDX Composite Index down 1.08%
next post
US jobs report to present first major test of stock market for 2025

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Montreal dockworkers union reject offer, lockout to begin
    • Factbox-Potential contenders to replace Justin Trudeau as Canadian prime minister

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy