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Tech stocks and miners drive European shares higher after Apple results

Published 05/02/2018, 03:47 AM
Updated 05/02/2018, 03:50 AM
© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt
STMPA
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ORRON
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IFXGn
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AAPL
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ISA
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ASML
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ICAs
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AMS
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LONDON (Reuters) - European shares rose on Wednesday, boosted by some strong earnings updates and a rising tech sector after results from Apple exceeded weak expectations, while investors' focus turned to euro zone GDP figures and the U.S. Fed meeting.

Shares in iPhone supplier ams (S:AMS) jumped 8.1 percent after Apple (O:AAPL) surprised the market with solid iPhone X sales, flouncing investors' expectations for a much weaker performance.

Other chipmakers STMicroelectronics (MI:STM), Infineon (DE:IFXGn), BE Semiconductor (AS:BESI) and ASML (AS:ASML) also gained 1.1 to 3.8 percent after the tech giant's results helped sentiment on the sector.

Europe's tech sector (SX8P) rose 1.1 percent to a six-week high.

It helped the pan-European STOXX 600 (STOXX) climb 0.4 percent, reaching its highest level since Feb 5 in early deals as investors awaited GDP data for the euro zone at 0900 GMT, and the U.S. Federal Reserve meeting later in the day.

Broadly strong earnings have helped the European index rise in recent weeks.

On Wednesday British satellite firm Inmarsat (L:ISA) led the pack, jumping 10.9 percent after reporting stronger first-quarter revenue.

Shares in Swedish oil firm Lundin (ST:LUPE) rose 4.7 percent after it became the latest European oil company to beat earnings expectations, helped by higher output.

British online grocer Ocado (L:OCDO) was a top gainer, up 5.2 percent after it signed a partnership deal with Swedish grocer ICA (ST:ICAA) to develop its online business.

Among results disappointments, Paddy Power Betfair (L:PPB) was the worst-performing on the European index, down 6.3 percent after first-quarter earnings fell. The bookmaker also announced a 500 million pound share buyback programme.

© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt

Mining stocks (SXPP) gained 1.7 percent, providing the bedrock for Europe's gains as copper prices recovered on strong China factory data.

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