European Stocks Rebound Amid Geopolitical Tensions

European stock market edges higher, ending a losing streak as energy and tech stocks rebound. Geopolitical tensions and rising oil prices drive sector gains, while defense stocks rise amid Ukraine-Russia conflict. Safe-haven assets see increased demand. Euro zone consumer confidence declines, impacting economic outlook.

After a challenging phase, European stocks saw a remarkable recovery on Thursday, fueled by rallies in energy and technology sectors. The STOXX 600 index climbed 0.5%, shaking off four straight days of losses amid geopolitical tensions, notably the escalating Ukraine-Russia conflict driving oil prices higher.

Ukraine reported a significant escalation with Russia allegedly firing an intercontinental ballistic missile at Dnipro, causing defensive stocks to surge by 1.5%. In parallel, safe-haven assets like gold, the Swiss franc, and the U.S. dollar gained traction with insurers experiencing a 1.6% uptick.

Despite this day of gains, the STOXX 600 underperformed compared to U.S. stocks, influenced by diverse factors including Donald Trump's U.S. presidential election victory, concerns over Chinese expenditure, and Euro zone economic uncertainties. Meanwhile, notable tech stocks like ASML and SAP saw early losses reverse, preserving market optimism.

(With inputs from agencies.)