MILAN/FRANKFURT: European shares rose for a third straight session on Thursday, as hopes of a large stimulus under incoming US President Joe Biden and upbeat Chinese export data boosted sentiment.
The pan-European STOXX 600 index rose 0.4%, with automakers, travel and mining stocks making it to the top gainers’ list. Germany’s DAX index rose 0.4% after preliminary data showed Europe’s largest economy shrank by a smaller-than-expected 5.0% in 2020 as a strong state response helped limit the havoc caused by the COVID-19 pandemic. European chipmakers received a boost after Taiwan’s TSMC posted a record high quarterly profit due to demand for devices requiring high-end chips.
Semiconductor equipment makers ASMI jumped 5.7% and ASML rose 2.7%.
The wider tech index was up 1.2%, with Dutch tech investor Prosus up nearly 5% on reports the Trump administration has scrapped plans to blacklist Chinese tech giants, including Tencent.
French carmaker PSA rose 4.0% after saying its sales in Europe recovered in the second half of 2020 and were back to growth in the fourth quarter. Fiat Chrysler jumped 4.3%, but Renault slipped 2.7% after it pledged more cost cuts and to focus on a smaller number of profitable models - which analysts found to be “conservative.”
Italy’s FTSE MIB lagged, with banks taking a hit after former premier Matteo Renzi pulled his small party out of government, stripping the ruling coalition of its parliamentary majority and triggering political chaos. Carrefour fell 6.6% after the French government raised concerns about its takeover by Canadian convenience-store operator Alimentation Couche-Tard. Swiss plumbing supplies maker Geberit dropped 3.3% after it revealed a hit to sales from the surge in value of the Swiss franc during 2020.
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