Tech Rally and Corporate Earnings Lift European Stocks Amid Tensions

European shares staged a modest recovery on Tuesday, buoyed by gains in technology stocks and a slew of positive corporate earnings, despite escalating tensions between the U.S. and Iran weighing on investor sentiment.

The pan-European STOXX 600 index closed up 0.7% at 609.72 points after suffering its largest daily drop in a month on Monday. Technology emerged as the top-performing sector, led by a 2.4% surge in chip stocks, aligning with a semiconductor rally in the U.S.

Among individual companies, Anheuser-Busch InBev's shares soared by 9.3% following quarterly results that surpassed expectations. Italy's UniCredit posted record quarterly profits and adjusted its full-year outlook, driving its shares up by 5.9%.

(With inputs from agencies.)