European shares rise on mining gains; tech lags

European stock markets opened on a positive note on Thursday, propelled by gains in mining companies, while technology shares struggled to keep pace as investors considered the potential impact of a Democratic victory in the US midterm elections on the tech sector. The pan-European STOXX 600 index climbed 0.5% to 660.33 points by 0807 GMT, inching close to a two-month peak it had reached the day before.

Basic resources saw a notable boost of 2.7%, driven by a 6% surge in ArcelorMittal's stock following the world's second-largest steel producer surpassing core profit estimates. Additionally, markets found solace in Brent crude prices trading below the $100-a-barrel mark, as expectations circulated that the recent Republican defeat might dissuade President Donald Trump from escalating tensions with Iran.

However, tech stocks faced headwinds, with ASML declining 2.7% and Soitec falling 4.5%, mirroring downward trends in Asian markets due to apprehensions that heightened scrutiny from Democrats could impede AI development in the United States. Rheinmetall, on the other hand, fell by 14% after reducing its 2026 sales forecast for the second consecutive time, citing the postponement of a contract for Germany's Arminius Boxer vehicle program and the anticipated delay in revenue from artillery ammunition due to slower batch approvals.