European shares edge higher as ASML's AI demand outlook boosts tech

European shares experienced a slight increase on Wednesday, bouncing back from a minor decline the day before. The tech sector played a key role in this market rally. The pan-European STOXX 600 index climbed 0.32% to 636.99 points by 0713 GMT, after slipping from a one-week high on Tuesday. ASML, the world's leading manufacturer of equipment for chip manufacturing, saw its shares jump 1.8% following a positive outlook concerning AI-driven demand for its chip-printing tools.

The company stated that it will struggle to meet all customer demand by 2027 or 2028, prompting a review of capacity expansion options. In line with this positive development, the tech sector gained 0.8%, outpacing other sectors. However, risk sentiment was dampened as oil prices rose following an incident where two vessels were attacked in the Strait of Hormuz.

Apart from ASML, Orsted fell 4.2% after Bloomberg News reported that the US might reconsider the permit for its Rhode Island wind farm. Market attention will now shift to the US consumer price index (CPI) data later in the day, which will provide insights into the Federal Reserve's monetary policy outlook.