MILAN/FRANKFURT: European stocks rose on Wednesday after chip equipment maker ASML and Swiss luxury group Richemont gave encouraging earnings updates, while investors hoped for a big US fiscal relief package as Joe Biden takes over as the next president.

The pan-European STOXX 600 index rose 0.5%, with the technology sector gaining 1.4% to its highest level in nearly two decades.

ASML Holding NV rose 2.4% after it posted better-than-expected fourth-quarter sales and said it had seen a strong order intake for 2021.

Technology stocks also looked set to boost Wall Street at the open, with Nasdaq futures jumping 0.6% on the back of Netflix’s stellar subscription growth numbers.

Luxury stocks got a boost after Richemont posted a 5% increase in quarterly sales, led by strong growth at its jewellery brands in Asia Pacific and the Middle East.

The group’s stock rose 1.3%, rival Swatch Group gained 1.1%, while Britain’s Burberry jumped 4.5% after it posted a sales growth of 11% in Asia Pacific in the third quarter.

Italy’s FTSE MIB gained 0.6% and lenders rose 1.7% after Prime Minister Giuseppe Conte won a confidence vote in the upper house Senate on Tuesday.

Among other stocks, Germany’s Hugo Boss added 5.8% after Mike Ashley-led Frasers said it boosted its stake in the company.