(Reuters) – Tech shares led the gains as Europe’s main stock index opened higher on Thursday, rebounding from a two-day fall that was steered by economic and political instability in France and the prospects of U.S. tariffs.
The pan-European index was up 0.6% at 0815 GMT, with some key inflation reports in focus to gauge the path of rate cuts.
Tech shares jumped 1.85% as chip companies gained after Bloomberg reported that the U.S. administration’s China chip curbs could be less severe than expected.
ASM International (AS:), BE Semiconductor and ASML (AS:) gained around 4% each.
France’s blue-chip index was up 0.5% after sliding to August lows in the previous session.
French Prime Minister Michel Barnier’s government’s future looks bleak, with his struggles to push the 2025 budget through a polarised parliament increasingly likely to topple his fragile coalition. A poll showed that 53% of French people want the government to fall.
Spain’s preliminary data showed headline inflation for November rose to 2.4% from 1.8% in October, in line with expectations.
Germany’s inflation data is due later and will help gauge the European Central Bank’s rate-cut trajectory, a day after stubbornly strong U.S. inflation data prompted worries the Federal Reserve may be cautious about policy easing.
Trading volumes are expected to be light with the U.S. market shut for the Thanksgiving holiday.
Among individual stocks, UK’s Direct Line (LON:) Insurance soared over 36% in early trade after it rejected a 3.28 billion pound ($4.16 billion) takeover offer from bigger rival Aviva (LON:).
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