European shares increased on Wednesday, recovering from minor losses in the previous session, as strong earnings reported by ASML bolstered the technology sector. The pan-European STOXX 600 index rose by 0.32% to 636.99 points by 0713 GMT after retreating from a one-week high on Tuesday.
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ASML, the leading supplier of chipmaking equipment, saw its shares climb by 1.8%. The company stated that demand for its AI-driven chip-printing tools is so high it will struggle to meet customer needs as far out as 2027 or 2028. ASML is actively considering ways to expand its production capacity and has raised its full-year sales projections.
The technology sector overall gained 0.8%, leading sector gains for the day. However, oil prices rose following reports of two vessels being struck in the Strait of Hormuz, which negatively impacted risk appetite.
Additionally, shares of Orsted fell by 4.2% after Bloomberg News reported that the U.S. government would re-evaluate the permit for its Rhode Island wind farm. Investor attention is also focused on the upcoming U.S. consumer price index (CPI) data, which is expected to provide insights into the Federal Reserve's monetary policy direction.
(Reporting by Avinash P in Bengaluru; Editing by Ronojoy Mazumdar)