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European stocks rose supported by strong earnings expectations for ASML, a company specializing in photolithography equipment for semiconductor manufacturing, amid ongoing global demand for AI data center infrastructure. Despite warnings from the European Central Bank President about a debt crisis in France and investor concerns over U.S. inflation data and its potential impact on interest rate policies, indices such as the Stoxx 600, DAX, and CAC 40 closed higher. However, caution persists ahead of upcoming U.S. inflation data, which could influence expectations regarding further interest rate hikes, as Treasury bond yields rose above 5.20%.
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