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(Sharecast News) - European stocks rose on Wednesday, with tech names on the front foot following well-received results from CoreWeave in the US, and as softer-than-expected German inflation data eased concerns about inflation and interest rates.
The benchmark Stoxx 600 index rose 0.7% to 663.05, Germany's DAX ended up 1.2% at 26,662.77 and France's CAC 40 closed 0.7% higher at 8,332.87.
Meanwhile, Brent crude was up 2.4% at $93.69 a barrel and West Texas Intermediate was 2.1% higher at $87.85, after Iran's security chief said Tehran would not allow any enriched nuclear material to leave the country and that there would be consequences if the US carried out any new US strikes on the Islamic Republic.
As far as CoreWeave is concerned, Kathleen Brooks, research director at XTB, said the neocloud company - that has seen its share price slump 34% year-to-date, and the cost to insure its debt surge - posted stronger-than-expected results for last quarter, and this has caused a major rebound in its stock price.
"Digging into the results, you get a more upbeat narrative compared to the dire warnings from some analysts about the state of the neocloud sector," she said. "CoreWeave's Q3 revenue was $3.66bn, 168% higher than a year ago. The company also raised its full year revenue outlook. This is fuelled by strong AI infrastructure demand, which boosted operating margins. The company also has a $132bn pipeline of future revenue, which should reassure investors."
On the macro front, figures from Destatis showed that German consumer price inflation slowed to 2.8% year-on-year in October from 3.3% in September, below economists' forecasts of around 3.0%-3.1%. The weaker-than-expected reading reinforced hopes that euro zone inflation pressures are easing, supporting expectations for a less restrictive interest-rate outlook.
In equity markets, tech heavyweights were among the best performers, with ATS, Soitec, Infineon, ASM International and BE Semiconductor all making strong gains.
Siemens Energy surged after the AI equipment maker lifted its outlook for 2027 for profit margins and announced plans to more than triple its dividend.
In terms of sector, miners fared well among rising copper prices, with the Stoxx 600 basic resources index closing up 1.3%.
Vestas Wind Systems tumbled, however, after its third-quarter operating profit missed expectations.