LONDON — European stocks closed higher Thursday, led by AI chip stocks which surged following record earnings by TSMC.
The pan-European Stoxx 600 finished the session 0.6% higher, with most major bourses and sectors in positive territory.
Dutch semiconductor equipment maker ASML popped as much as 7% in early afternoon dealmaking, sending it to record highs, as investors responded to stronger-than-expected earnings from Taiwan’s TSMC. ASML finished the day 6% higher.
TSMC reported a 35% increase in fourth-quarter profit, beating estimates and hitting a fresh record as demand for artificial intelligence chips remained strong.
ASM International closed 11.2% higher, and BE Semiconductor gained 7.3%.
UniCredit rose 1.4% after the Italian bank said that recent reports that it was planning to buy a stake in rival lender Banca Monte dei Paschi di Siena are “speculative in nature and unjustified” and “pure invention.”
European bank M&A activity is expected to pick up this year — with Italy seen as a deal hotspot — and analysts see MPS as among the key targets. “M&A is a strategic tool for the bank,” UniCredit said in a statement.
Regional investors were assessing the outcome of a high-stakes meeting between senior officials from the U.S., Denmark and Greenland on Wednesday to discuss the ownership of the Arctic island.
U.S. President Donald Trump’s sees the semi-autonomous Danish territory as critical for national security and has threatened to seize it by force, if necessary.
A meeting at the White House between officials from Greenland, Denmark, and the U.S. Wednesday ended with “fundamental disagreement” over the ownership of the island, a Danish official said following the meeting, but that both sides would continue to talk.
Ahead of the talks, Trump doubled down on acquiring the territory, stating on social media that anything less than Greenland becoming a part of the United States was “unacceptable.”
Iran is also being closely watched after Trump threatened military action against the Islamic Republic if it executed protestors arrested during a violent crackdown on demonstrations around the country.
Trump appeared to soften his tone Wednesday night, however, saying he had been assured that executions had stopped and that he would “watch it and see” regarding potential military action. Iran reopened its airspace early Thursday after a temporary closure barred most incoming and outgoing flights.
Earnings came from Richemont before the bell on Thursday. The luxury goods conglomerate, which owns a bevy of brands such as Cartier, reported a third-quarter sales increase of 4% year-on-year to 6.4 billion euros ($7.4 billion). Third-quarter sales jumped 11% at constant exchange rates. It posted strong growth in most markets, notably in the U.K. and Italy. Its shares closed almost 2.1% lower.
Data releases include U.K. GDP for November, which showed 0.3% growth for the month, according to data from the Office for National Statistics. Economists polled by Reuters had expected a very modest growth figure of 0.1%. The pound dipped as GDP figures were released, and was last around $1.3387.
ING Developed Markets Economist James Smith told CNBC’s “Europe Early Edition” Thursday that 2026 growth will likely slow to 0.9% in the next fiscal year, from an expected 1.4% this year.
Speaking before the data release, he noted that government spending increases won’t be repeated to the same extent in the coming year. Investment confidence is “really weak” and will stay so for the first few months, Smith added. ING is not “upbeat” but wouldn’t go as far as to say they are “doom and gloom,” he added.
The main U.K. bonds, known as gilts, were last seen edging higher. The benchmark 10-year was 5 basis points higher, and the 5- and 2-year gilts were both up around 6 basis points.
Spanish and French inflation figures and EU trade balance data are also expected today.
