Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Tech lifts European shares as economic outlook improves

Economy Jan 23, 2023 12:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 20, 2023. REUTERS/Staff
 
STOXX
+0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NFLX
-1.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
C
-0.63%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sruthi Shankar and Amruta Khandekar

(Reuters) -European stocks climbed on Monday, with technology firms spearheading gains, as optimism about the eurozone economy likely avoiding a steep recession overshadowed hawkish remarks from European Central Bank (ECB) officials.

The pan-European STOXX 600 closed up 0.6%. The index had posted its first weekly decline of the year in the previous session on jitters around the earnings season and upcoming interest rate decisions from major central banks, including the European Central Bank.

The technology sector jumped 2.3%, in line with its U.S. counterpart, boosted by shares of semiconductor firms such as ASML Holding (NASDAQ:ASML) and Infineon (OTC:IFNNY) Technologies.

The benchmark STOXX 600 index hit a nine-month high last week as a warm winter in Europe and China abandoning its tight COVID-19 rules brightened the outlook for Europe's economy.

"The Chinese reopening is absolutely crucial. It now looks like we could avoid a recession and if we don't, it looks likely to be a mild slowdown rather than anything worse and a lot of that has got to do with the potential growth in China," said James Hart, investment director of Witan Investment Trust.

"If recession is avoided, demand for products such as German autos won't be as negative as feared and companies like that are big customers to the chipmaking industry."

China-exposed luxury firms such as LVMH and Kering (EPA:PRTP) rose between 0.8% and 1.7% while rate-sensitive euro zone banks added 0.8%.

Despite signs of easing inflation in the eurozone, ECB policymakers have remained hawkish, with governing council members Klaas Knot and Peter Kazimir backing the case for two more 50 basis point rate hikes.

Investors will look for more clues on the central bank's tightening plans when ECB President Christine Lagarde speaks later in the day.

With the earnings season underway, investors are waiting to see if the results will continue to support the recent rally in markets.

Fourth-quarter earnings for STOXX 600 companies are forecast to have grown by 10.7% year-on-year, the slowest in two years, according to Refinitiv I/B/E/S data.

The S&P Global (NYSE:SPGI) Purchasing Managers' Index (PMI) survey, due on Tuesday, was expected to show an improvement in January eurozone business activity.

Euro zone consumer confidence improved in January from December, data on Monday showed.

Limiting gains on Germany's DAX index, Symrise fell 5.5% after the German flavour and fragrance maker reported a lower-than-expected EBITDA margin for 2022.

Remy Cointreau rose 3.3% after Citigroup (NYSE:C) upgraded the French spirits maker's stock to "buy".

Tech lifts European shares as economic outlook improves
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email