Analysis: European software stocks rebound as investors reduce their holdings in technology stocks.

Ana Chkhikvadze of Junli Henderson stated that as investors avoid semiconductor companies and turn to other tech stocks, European software stocks are on the rise. The software sector led the way in European markets on Tuesday, with a sector index rising by 4.1%. Chkhikvadze said, "Investors have reduced their exposure to the strong-performing semiconductor and hardware stocks so far this year, leading to relatively better performance in the broader software sector." The recent better-than-expected quarterly performances of some US software companies in the past few weeks have also boosted this sector. German software company SAP surged by 6.2%. French group Criteo rose by 5%, while Dutch software solutions company Vocus Group rose by 3.8%.