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The
pan-European STOXX 600 was up 0.6%, set for its fourth straight
session of gains.
Tech stocks jumped 1.2%, with chipmakers leading gains after
Nvidia, the world's most valuable chipmaker, forecast
higher-than-anticipated quarterly revenue and also announced a
share buyback programme.
"We think many investors continue to underestimate the amount of
investment Nvidia has poured into its ecosystem, and the lead
that (it) has given the company in the market," Jefferies
analysts said.
"(It) has translated to a virtuous circle of software developers
and platform suppliers embracing Nvidia as the ecosystem of
choice for AI workloads."
Shares of ASM International, BE Semiconductor, ASML Holding and
Aixtron rose between 1.7% and 2.4%.
Frankfurt-listed shares of Nvidia advanced 8.7%.
Easing bond yields across Europe further lifted gains, with
German bund yields, considered the region's benchmark, easing to
2.48%. Rate-sensitive real estate stocks gained 1.5%, touching a
more than one-week high.
Traders are evenly split between a 25-basis point hike and a
pause by the European Central Bank (ECB), a day after a survey
showed a downturn in euro zone business activity has deepened
far more than thought this month in a broad-based fall across
the region, particularly in Germany, Europe's largest economy.
"Yesterday's data also supports our view that central banks are
close to being done with rate hikes," said Mohit Kumar, chief
financial economist for Europe at Jefferies.
European retailers added 0.6% after falling more than 1% in the
previous session.
Looking ahead, market participants will keep an eye on central
banks' meeting at Jackson Hole, in the United States, which
begins on Thursday.
ECB President Christine Lagarde and Federal Reserve Chair Jerome
Powell are scheduled to speak on Friday.
Among individual stocks, Symrise gained 2.9% after Morgan
Stanley upgraded the German flavour and fragrance maker to
"overweight" from "underweight".
Air Liquide rose 1.8% after Berenberg upgraded the French
industrial gas company to "buy" from "hold".
Alk-Abello surged 11.5% after the Danish provider of allergy
treatment products' second quarter operating profit almost
doubled year-on-year.
Harbour Energy fell 1.0% after Britain's largest North Sea oil
and gas producer narrowed its annual production forecast range.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sherry
Jacob-Phillips and Sonia Cheema)
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