European equity indices ended mostly higher on Tuesday as investors weighed the impact of rising energy prices on the global economy. The STOXX 50 edged up 0.2% to 5,585, while the broader STOXX 600 advanced 0.5% to 579.
ASML was among the session’s top performers after SK Hynix announced plans to purchase $8 billion worth of lithography equipment from the Dutch chipmaking equipment supplier. The chemicals sector also gained ground as European natural gas prices gave back part of this month’s sharp advance, alleviating pressure on margins. Air Liquide and BASF climbed 2.5% and 4%, respectively.
However, oil prices continued to rise as tensions between Iran, Gulf nations, and Israel escalated. Bank stocks extended losses on concerns that a deteriorating inflation outlook could weigh on the sector, with Nordea down 2.4% and ING off 1.4%.
On the macroeconomic front, preliminary data indicated that Eurozone private-sector activity expanded at a slower pace in March, offering the first clear sign that higher energy costs linked to the conflict are starting to drag on output.