European stocks close higher, led by technology shares

European stock exchanges closed higher Wednesday, led by strong gains in technology shares, as investors monitored global bond yields, geopolitical risks, and quarterly earnings expectations from US chipmaker Nvidia.

The pan-European Stoxx Europe 600 rose 1.46% to close at 620.29 points.

Germany’s DAX 40 gained 1.38% to 24,737.24, while the UK’s FTSE 100 increased 0.99% to 10,432.34.

France’s CAC 40 added 1.7% to finish at 8,117.42, Italy’s FTSE MIB 30 advanced 1.71% to 49,181.66, and Spain’s IBEX 35 climbed 2.15% to 18,051.70.

The euro/dollar exchange rate was up 0.19% at 1.1626 as of 1655GMT.

Technology shares led the gains across the region, with the sector rising by an average of 2.9%, while mining and banking stocks gained 2.28% and 2.69%, respectively.

The positive tone was supported by UK inflation data, which came in below expectations. According to the Office for National Statistics, annual consumer inflation slowed to 2.8% in April from 3.3% in March.

Investors also tracked global bond markets after US Treasury yields retreated slightly from elevated levels. The US 30-year yield had climbed to 5.19% on Tuesday, its highest level since 2007, while the 10-year yield reached 4.69% before easing on Wednesday.

On the geopolitical front, remarks by US President Donald Trump suggesting progress in negotiations with Iran, along with lower oil prices, helped support risk appetite.

Markets also focused on Nvidia’s quarterly earnings, due after the US market close, as expectations around artificial intelligence demand boosted semiconductor stocks.

Analysts at investment firm Jefferies said market expectations for Nvidia’s second-quarter revenue stood at $87 billion, while buy-side expectations, including asset managers and hedge funds, reached as high as $91.5 billion.

German chipmaker Infineon rose more than 5%, leading gains on the DAX, while semiconductor equipment supplier Aixtron also advanced 5%.

Defense stocks also gained ground. Hensoldt surged 10.3%, Rheinmetall rose 2.5%, and Renk gained 2%, despite a share sale by its main shareholder, KNDS.