PARIS: European shares rose on Thursday as upbeat results eased some worries about a profit hit from higher borrowing costs, while US economic data bolstered hopes of a soft landing.
The pan-European STOXX 600 rose 0.4% after two consecutive days of declines. Most STOXX 600 sectors were up, led by a 2.2% rise in retailers, followed by financial services and banks which climbed 1.9% and 1.6% respectively.
STMicroelectronics shares jumped 8.2% after the chipmaker beat fourth-quarter sales and earnings expectations, boosting the wider technology sector.
Spanish bank Sabadell soared 11.2% to hit an over three year high on an upbeat full-year outlook, while Finnish telecoms equipment maker Nokia rose 4.0% after beating quarterly operating profit expectations and forecasting higher 2023 sales.
Along with corporate earnings, the market focus is now on upcoming interest rate decisions from the Federal Reserve and the European Central Bank (ECB) next week.
“Earnings reports are better than markets are expecting. The China reopening has lifted the mood and so (when) you put that all together, things are not as bad as perhaps they could have been,” said Giles Coghlan, chief market analyst at HYCM.
Data showed the US economy grew faster than expected in the fourth quarter, but momentum had slowed significantly by the end of the year, with higher interest rates eroding demand.
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