European shares were little changed on Thursday as gains in technology stocks, led by strong results from U.S. chipmaker Nvidia, were offset by declines in consumer goods, chemicals and automobile stocks.
The pan-European STOXX 600 was down 0.07% at 655.95 points as of 0709 GMT, with investors weighing Nvidia's upbeat outlook against broader economic and geopolitical concerns.
Technology stocks led sectoral gains, rising 1.5% after Nvidia projected a 70% increase in revenue for the next fiscal year, highlighting continued strong demand for artificial intelligence computing. Shares of AT&S, Technoprobe and Computacenter climbed between 4.3% and 4.9%.
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The upbeat Nvidia forecast helped lift European technology shares as investors continued to focus on the strength of AI-related spending and semiconductor demand.
However, gains across the broader market were restrained by weakness in personal and household goods, chemicals and automobile stocks, which declined between 0.7% and 0.9%.
Middle East tensions in focus
Investors were also monitoring diplomatic developments in the Middle East. Qatar's prime minister was due to visit Tehran on Thursday as part of efforts to revive diplomacy following an escalation in tensions between the United States and Iran.
The talks come after Washington signalled plans to increase economic pressure on Tehran by targeting its trading partners with sanctions, while Iran and the United States exchanged accusations over the worsening situation.
Oil prices extend declines
Oil prices fell by more than $1, extending their recent losing streak as markets assessed the possibility of progress in talks involving Iran and Qatar.
Reuters reported that investors were betting that diplomatic efforts could help reopen the Strait of Hormuz, a crucial oil shipping route, potentially easing supply disruptions linked to the Middle East conflict.
Lower oil prices could offer some relief to European economies by reducing energy-cost pressures, although markets remain sensitive to any developments that could threaten regional supply routes.
For now, European equities remain caught between optimism over the AI-driven technology boom and concerns over weakness in several traditional sectors, while geopolitical developments continue to influence energy prices and broader investor sentiment.
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