May 14 - European stock markets climbed on Thursday, with optimism tied to artificial intelligence developments helping to offset persistent concerns about a deadlock in U.S.-Iran peace talks and the implications of a high-stakes U.S.-China summit that remains on investors' radar.
By 0703 GMT the pan-European STOXX 600 index was 0.4% higher at 614.05 points, following a 0.8% rise on Wednesday. Trading volumes were likely subdued in some locales as several domestic markets were closed for a public holiday.
Official figures showed Britain's economy expanded unexpectedly in March, growing by 0.3%, and the blue-chip FTSE 100 was up 0.2% during the session. Despite recent upward moves, European equities as a whole remain below pre-war levels, with inflation readings underlining how higher oil prices continue to affect the import-dependent region.
On the policy front, the European Central Bank's chief economist Philip Lane was the latest ECB official to say interest rate increases might be required to rein in inflation. Money markets are currently pricing in more than two ECB rate rises this year, with the first of those expected in June.
Among notable individual movers, luxury goods company Burberry fell about 4% after reporting fourth-quarter sales that were broadly in line with expectations; the company cited weaker tourism and spending linked to the Iran conflict as a headwind.
The market backdrop is therefore mixed: technology sector optimism, driven by artificial intelligence themes, has supported broader indices even as geopolitical tensions and inflation considerations continue to shape expectations for policy and corporate performance.
Market context:
- STOXX 600 rose 0.4% to 614.05 points as of 0703 GMT, after a 0.8% gain the previous day.
- FTSE 100 was up 0.2% during the session.
- UK GDP expanded 0.3% in March, an unexpected increase.
This market note reflects the data and developments reported for the day and does not speculate beyond those facts.