June 29 (Reuters) – European shares were steady on Monday, underpinned by gains in technology stocks, while investors mulled over the outlook of a fragile ceasefire in the Middle East after the United States and Iran agreed to halt the latest bout of hostilities.
The pan-European STOXX 600 index held its ground at 636.13 points by 0709 GMT, with technology stocks leading sectoral gains with a 1.1% rise.
Nagarro soared 90% after India’s Persistent offered €81 per share to acquire the AI-led digital engineering firm.
The broader tech sector rose after last week’s selloff, which marked the sector’s biggest weekly fall since mid-March.
The STOXX index ended the previous week flat after concerns around ballooning valuations in the AI sector, and expectations that central banks will lift interest rates to combat energy price-induced inflation pressures weighed on riskier assets and spurred a bout of market volatility.
Iran and the United States traded fire through the weekend before agreeing to halt hostilities and renew talks.
Crude prices edged up 0.6% at $72 a barrel as investors assessed crude shipments through the Strait of Hormuz in the face of a tenuous interim ceasefire prevailing between both parties.
However, a holding ceasefire has prompted bullish outlooks from brokerages. J.P. Morgan was the latest to lift its year-end target for European equities, citing corporate earnings strength and improvements in the geopolitical climate.
Focus will be on the European Central Bank’s Sintra conference where Federal Reserve Chair Kevin Warsh and ECB President Christine Lagarde’s remarks will be scrutinised for their outlooks on monetary policy.
(Reporting by Johann M Cherian and Tharuniyaa Lakshmi Bengaluru)
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