STOXX 600 rises on tech strength; oil and bond yields remain a drag

By Sudeshna Ghoshal

Sept 29 (Reuters) - European shares climbed on Tuesday, supported by technology stocks, although higher crude prices and elevated bond yields capped broader gains.

The pan-European STOXX 600 .STOXX was up 0.3% at 640.28 points by 0830 GMT. Most other regional indexes also traded modestly higher.

Technology shares .SX8P led sectoral gains, rising to their highest level in a month. Semiconductor stocks advanced after Reuters reported Anthropic is making a major bet on AI transforming the global economy, with public investors expected to help fund that expansion through a planned stock market listing. The public offering is expected to value the company at more than $2 trillion.

"The prospectus has brought back to the forefront excitement surrounding the IPO trade, which struggled recently after these AI companies called for a slowdown," said Fiona Cincotta, senior market analyst, StoneX.

Earlier this month, executives from several major AI companies urged a slower pace of development over concerns about misuse, weighing on technology stocks already pressured by rising bond yields.

Global bond yields remain near multi-decade highs as investors grapple with inflation risks from rising energy costs. Oil prices climbed as the lack of a breakthrough in the Middle East conflict kept Brent crude futures at $106.99 a barrel. O/R
European economies are particularly vulnerable to surging energy prices because of their reliance on fuel imports.

European Central Bank President Christine Lagarde said on Monday that this year's inflation surge has yet to generate significant second-round effects across the euro zone, suggesting a measured policy response remains appropriate. The ECB raised interest rates earlier this month.

Among individual stocks, Lindt LISN.S slipped roughly 7% to become the STOXX's biggest decliner. Shares fell after the Swiss chocolatier cut its 2026 sales forecast for the second time this year, citing subdued consumer sentiment, rising price sensitivity and weak demand during a European heatwave. Peers Barry Callebaut BARN.S and Nestle NESN.S also came under pressure.

On the flipside, Julius Baer BAER.S was the top gainer, up 7.7% after Switzerland's financial regulator FINMA closed enforcement proceedings over private debt loans and client ties to two "politically exposed" Russian individuals.

Shares of Legrand LEGD.PA advanced 7.3% after the French electrical and digital building infrastructure group raised its medium-term targets.