European stocks rose on Tuesday, supported by falling oil prices and improved investor risk appetite.
At the same time, concerns over Chinese competition in the memory chip industry weighed on the technology sector.
The STOXX 600 index climbed 0.44% to 638.44 points.
Britain’s FTSE 100 rose by about 1%, posting the best performance among Europe’s major indices.
According to Reuters, oil prices fell as markets assessed the fallout from attacks on Saudi Arabia and the possibility of increased Russian diesel supplies.
This decline helped support shares in sectors linked to economic activity.
The chemicals sector led the gains, rising 2%, while the technology sector lost 1.5% amid a global sell-off in chip stocks.
Analysts at OCBC explained that progress made by China’s ChangXin Memory Technologies in developing high-density memory chips had heightened investor concerns.
The company plans to launch a product designed for servers before the end of the year, intensifying competition for existing manufacturers.
On the corporate front, LVMH shares rose despite quarterly sales coming in below expectations, due to weak Chinese demand for Louis Vuitton and Dior.
Meanwhile, Nokia shares fell 4.4% after the company agreed to sell its Enterprise Campus Edge business to private equity group Aurelius.
At the same time, investors are awaiting key economic data from Germany, Europe’s largest economy, looking for signals to help them assess growth prospects and market direction in the coming period.
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