FX.co ★ European Shares Edge Higher

European stocks experienced a modest increase on Thursday, with the STOXX 50 advancing by 0.2% and the STOXX 600 climbing 0.3%. These gains extended the momentum from the previous day as investors kept a close watch on developments in trade relations. Market sentiment improved following the announcement that the United States had eased certain restrictions on chip design exports to China. This move signaled a potential reduction in trade tensions and the possibility of reaching a trade agreement. In response, semiconductor stocks saw an uptick, with Siemens rising by 1.6%, Infineon up by 2%, and NXP Semiconductors soaring by 4%. Additionally, the U.S. struck a trade deal with Vietnam that includes a 20% tariff on Vietnamese imports. Across the channel in the United Kingdom, political instability remained under scrutiny. Concerns had arisen over Chancellor Rachel Reeves' position, leading to a selloff in bonds the day prior. However, Prime Minister Keir Starmer provided reassurance by affirming his support and confirming that Reeves would continue to serve as Chancellor of the Exchequer.