European stocks extended their gains for the third consecutive session, though the pace of the rally remained modest.
Geopolitical tensions prompted investors to remain cautious, despite strong earnings reports from a number of major companies.
In this context, the European Stoxx 600 index rose 0.16% to 643.73 points during trading.
Nevertheless, the index posted only a weekly gain of 0.41%.
Conversely, investors had hoped that the earnings season would shift market focus toward corporate performance.
However, renewed tensions between the United States and Iran kept caution in the forefront of trading.
At the sector level, media stocks posted the best gains, rising 1.43%.
In contrast, basic materials stocks were the biggest losers, falling 1.38%.
The technology sector remained generally stable, despite Taiwanese company TSMC announcing a record jump of 77%.
This reflects continued strong global demand for semiconductors.
Meanwhile, shares of the Dutch company ASML rose 3.16% after reporting strong financial results.
On the other hand, shares of STMicroelectronics fell by 4.91% and those of BE Semiconductor by 3.20%.
Consequently, this performance reflects the continuing divergence within the semiconductor sector.
Despite signs of a slowdown in the sector’s performance this month,
analysts expect the European market to see its strongest earnings season.
If these expectations are met, it could provide European stocks with additional support in the coming period.
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