European markets opened higher on Tuesday, driven largely by gains in renewable energy stocks.
Investors reacted strongly to a US court decision that allowed Danish company Orsted to resume construction of its stalled offshore wind project in Rhode Island.
The ruling sent Orsted shares sharply higher and sparked momentum across the sector, while losses in semiconductor equipment makers tempered broader gains.
At the same time, traders kept a close watch on upcoming commentary from Federal Reserve officials, including Chair Jerome Powell, to gauge the future path of US interest rates after last week’s cut.
Wind stocks push utilities higher
The pan-European STOXX 600 rose 0.3% to 555.1 points as of 0712 GMT, with Spain’s IBEX and the UK’s FTSE also adding around 0.3% each.
Orsted’s shares surged 9.4% after the US federal ruling cleared the way for work to continue on its nearly completed Rhode Island offshore wind project.
The decision was seen as pivotal for the company’s expansion efforts in the United States, where regulatory challenges have delayed progress.
The positive sentiment spilled over to rivals, with Vestas gaining nearly 3%. The rally helped lift the broader European utilities sector by 1%, reinforcing the role of renewable energy in stabilising market direction during the session.
Semiconductor firms drag on index
Despite the strong performance in energy, technology-related shares created pressure on the overall index. ASM International fell 5.6% after cutting its revenue target for the second half of 2025, citing weaker-than-expected demand for its semiconductor equipment.
The company’s warning weighed on the Dutch tech space, with ASML shares down 1.3%, making it one of the biggest drags on the STOXX 600.
This divergence highlighted the contrasting trajectories of Europe’s green energy firms and semiconductor players, reflecting sector-specific challenges that could shape investor sentiment in the months ahead.
Investors track Federal Reserve commentary
Beyond corporate moves, attention turned to monetary policy developments in the United States. Investors awaited speeches later in the day from Federal Reserve officials, including Chair Jerome Powell, to better understand the central bank’s stance following last week’s rate cut.
Markets have been closely tracking the Fed’s signals on borrowing costs, given their impact on global capital flows, equities, and currency markets.
The reaction in European bourses suggested that while energy-related optimism provided a lift, global policy cues would remain a dominant factor in setting the market’s near-term direction.
Broader market resilience
While semiconductor firms limited the pace of gains, the overall resilience of European equities pointed to investor confidence in sectoral diversity.
With utilities and renewable energy leading advances and technology facing temporary setbacks, the STOXX 600 managed to hold firm above the 550-point mark.
Analysts noted that the interplay between energy growth, tech headwinds, and monetary policy decisions would continue to define the trading landscape across Europe.
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