The pan-European STOXX 600 ended up 0.8 per cent at 616.05 points on broad-based gains

European shares closed higher on Thursday, after ‌hitting the highest in a week with a boost from technology stocks, while investors remained cautious about developments in China-U.S. talks.

The pan-European STOXX 600 ended up 0.8 per cent at 616.05 points on broad-based gains.

The technology sector index climbed 2.6 per cent led by ​semiconductor stocks, with STMicroelectronics up 5.4 per cent, BE Semiconductor up 3.3 per cent and Infineon climbing 5.7 per cent.

Germany’s DAX ​rose 1.3 per cent and led regional bourses higher, with SAP gaining 3.6 per cent. Bank of America said ⁠the software giant’s ongoing cloud momentum and backlog growth of nearly 25 per cent could boost revenue by double ​digits, supported by operating leverage and AI, alongside potential upside from capital deployment.

However, the continent’s exposure to AI ​hardware firms pales in comparison with its Asian and U.S. peers, prompting many investors to look beyond European markets.

It’s the theme that’s been working against Europe for the last four years since the debut of ChatGPT in late 2022. That’s ​been the most persistent reason for underperformance and more recently, it has to do with the energy ​imports and political instability, said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.

Among others, luxury brand Burberry ​slid 6.8 per cent after ⁠reporting fourth-quarter sales in line with expectations, while Watches of Switzerland climbed 19.2 per cent on forecasting full-year operating profit above expectations.

Investment company 3i Group plunged 12.7 per cent after its key portfolio company Action’s like-for-like sales growth slowed to 2.4 per cent in 19 weeks to May ⁠10 ​versus 6.8 per cent a year ago.