27.07.202615:53:11UTC+00European Stocks Inch Higher

European stocks finished slightly higher, outperforming their North American peers, supported by a pullback in bond yields. The Euro STOXX 50 edged up to 6,290, while the STOXX Europe 600 added 0.2% to close at 645.6. Sovereign bond yields fell sharply as a temporary halt in strikes between Iran and the US rekindled expectations for LNG and fuel exports from the region, easing concerns over inflation.

Banks advanced strongly, with Santander and BNP Paribas each gaining more than 2%, and Intesa Sanpaolo up 1% ahead of its earnings release this week. Software producers also rallied, mirroring Wall Street’s strength in the sector in the run-up to a series of AI hyperscaler earnings, with SAP surging 7.8%.

By contrast, chipmakers were volatile and declined, as a wave of circular investments involving Nvidia intensified worries about excessive capital flowing into the sector. ASML slumped 8.4%, and Infineon lost 4.5%. In addition, Argenx fell 2.3% after agreeing to acquire Forte Biosciences in a $2.2 billion deal.