European stock markets moved higher on Thursday, with the technology sector showing notable strength as market confidence in the AI theme recovered. Shares of Bayer AG surged after the company received a favorable court ruling regarding its herbicide.

The Stoxx Europe 600 index rose 0.8%, setting a fresh closing record high. Semiconductor-related stocks such as Infineon and ASML advanced following an earnings beat from Micron Technology, which alleviated concerns about excessive valuations in the AI sector.

Shares of Bayer AG soared as much as 20% after the U.S. Supreme Court ruled that the company is not liable for tens of thousands of lawsuits regarding whether its Roundup herbicide should be labeled as a cancer risk. This decision is expected to help conclude a decade-long wave of litigation that has already cost the company over $10 billion.

The telecommunications and chemical sectors underperformed, while utilities and construction stocks were among the leading gainers.

The European benchmark had been trading near its record levels, supported earlier in the week by a temporary peace agreement between the U.S. and Iran. Despite a pullback earlier this week triggered by a global sell-off in tech stocks, the Stoxx Europe 600 has outperformed its U.S. counterpart in June after lagging for three months.

"The case for European equities is primarily based on starting valuations, reasonable earnings growth, and the likelihood that European interest rates may not rise further. This improves the prospects for better economic growth, albeit from a fairly mediocre starting point," said Richard Flax, Chief Investment Officer at Moneyfarm.

In other corporate news, bicycle and car parts retailer Halfords Group PLC saw its shares jump to their highest level since February 2024 after issuing an optimistic profit forecast.