European shares rose on Tuesday, supported by falling oil prices, although technology stocks came under pressure amid concerns over intensifying competition from Chinese chipmakers, Reuters reported.
The pan-European STOXX 600 climbed 0.44% to 638.44 points by 0714 GMT, while London's FTSE 100 advanced around 1%, outperforming other major regional indexes.
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Oil prices declined as investors assessed supply risks following attacks on Saudi Arabia and weighed the possibility of additional diesel supplies from Russia. Lower energy prices helped improve market sentiment, supporting gains across several European sectors.
The chemicals sector led the advance, rising 2%, while the technology sector fell 1.5%, tracking a global selloff in technologyshares.
Concerns about China's growing semiconductor capabilities weighed on the sector after reports of advances by ChangXin Memory Technologies (CXMT) raised questions about the competitive position of established memory-chip manufacturers.
According to Reuters, CXMT's progress on denser dynamic random-access memory (DRAM) technology and plans to introduce a new server-memory product by the end of the year have intensified concerns about competition from Chinese chipmakers.
The developments added to pressure on globaltechnology stocks as investors reassessed the outlook for established semiconductor producers amid China's efforts to strengthen its domestic chip industry.
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Among individual stocks, luxury goods group LVMH edged higher despite reporting third-quarter sales below market expectations. Weakening consumer sentiment in China continued to weigh on demand for its Louis Vuitton and Dior brands, Reuters reported.
Shares of Nokia fell 4.4% after the Finnish telecommunications equipment maker agreed to sell its Enterprise Campus Edge business to private equity group Aurelius.
Investors also turned their attention to key September economic data from Germany, Europe's largest economy, due later on Tuesday. The figures could provide further insight into the health of the region's economy and influence market sentiment.
European markets remained supported by easing oil prices, but weakness in technologyshares highlighted investor concerns about intensifying global competition in the semiconductor industry.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
