Tech Surge Lifts European Markets Amidst Political Unrest

European stock markets rebounded on Thursday, led by tech sector gains after a report suggested U.S. chip curbs on China may be less severe. French politics remain unstable, while upcoming inflation data from Germany and the impact of U.S. holidays raised uncertainty. Major gains were seen in UK insurance stocks.

Tech shares were at the forefront of gains as Europe's major stock index opened higher on Thursday, recovering from a two-day slump driven by France's political instability and looming U.S. tariffs.

The pan-European STOXX 600 index rose by 0.6% at 0815 GMT, with attention on vital inflation reports to understand future rate cuts. Tech sector stocks surged 1.85% after Bloomberg indicated that U.S. chip restrictions on China might not be as harsh as expected.

ASM International, BE Semiconductor, and ASML each increased by about 4%, while France's top index improved by 0.5% following previous August lows. Concerns grow for French Prime Minister Michel Barnier as his coalition faces potential downfall over the 2025 budget. Polls reflect 53% of citizens favoring a government collapse. Spain's preliminary inflation data revealed a rise, aligning with predictions. Germany's inflation data, forthcoming, will offer insights into the European Central Bank's rate-cut strategy, contrasted by the Federal Reserve's cautious stance following strong U.S. inflation data. With the U.S. shut for Thanksgiving, trading volumes are anticipated to be sparse. Meanwhile, UK's Direct Line Insurance saw a 36% surge post rejecting Aviva's massive takeover bid.

(With inputs from agencies.)