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STMicro results trigger tech boost for European stocks

Published 01/24/2019, 03:58 AM
Updated 01/24/2019, 04:00 AM
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
UK100
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DE40
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GS
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STMPA
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NSISb
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IFXGn
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ASML
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TOD
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AMS
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BARN
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SX8P
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DHER
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LONDON (Reuters) - European shares inched higher on Thursday as better-than-expected results from chipmaker STMicro delivered a boost to the tech sector, while oil stocks weighed on the market.

The pan-European STOXX 600 (STOXX) gained 0.1 percent by 0843 GMT, in line with Germany's DAX (GDAXI) while Britain's FTSE 100 (FTSE) fell 0.4 percent.

Chipmaker STMicroelectronics (MI:STM) jumped 7 percent after reporting a fourth-quarter margin slightly above targets, though it predicted a sharp fall in first-quarter sales.

The tech sector (SX8P) climbed 1.4 percent as investors pounced on the bit of good news from chipmakers which have been grappling with slowing demand.

AMS (S:AMS), Siltronic (DE:WAFGn), Infineon (DE:IFXGn), ASML (AS:ASML) jumped 3.7 percent to 73 percent.

Disappointing results dented some.

Shares in Danish pharmaceuticals company Novozymes (CO:NZYMb) fell 4.3 percent, the biggest STOXX fallers, after the CFO said Middle East markets were likely to remain weak in 2019.

Italian fashion brand Tod's (MI:TOD) was also punished by the market, falling 6.2 percent after it said like-for-like sales for 2018 fell 3 percent due to a worsening of the performance in Italy and the rest of Europe.

Broker notes moved some stocks.

Delivery Hero (DE:DHER) shares fell 3.8 percent after JP Morgan cut the stock to "neutral" from "overweight".

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

Swiss chocolate maker Barry Callebaut (S:BARN) climbed 4.9 percent with traders citing an upgrade from Goldman Sachs (NYSE:GS), while Fresenius climbed 3.6 percent after BAML upgraded it to "buy".

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