European shares extend gain with technology in lead

Posted on October 18, 2022Comments Off on European shares extend gain with technology in lead

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 17, 2022. REUTERS/Staff

(Reuters) – European shares advanced on Tuesday, building on the previous session’s rally, driven by the historic reversal of Britain’s fiscal plan, with investors keeping a watch on earnings reports to gauge the economic outlook.

The region-wide index was up 0.5% by 0705 a.m. GMT, extending gains for a fourth straight session, led by technology stocks, with shares of chip makers such as ASML Holdings and BE Semiconductor up between 0.9% and 3%.

Also, market sentiment was lifted by a report that the Bank of England was likely to delay the sale of billions of pounds of government bonds to encourage more stability in battered gilt markets.

With central banks aggressively tightening monetary policy in the face of decades-high inflation and growing risks of recession in Europe given an energy crisis, markets are parsing forecasts from companies to gauge the impact of macro pressures.

France’s Publicis Groupe gained 3.8% after the world’s third-biggest advertising group raised its full-year outlook for the second time this year.

Shares of Swiss drugmaker Roche fell 1.5% as its quarterly sales declined due to a slump in COVID-19 treatments and diagnostic testing.

Rio Tinto (LON:) slipped 0.3% after it projected annual iron ore shipments at the lower end of its forecast amid weak global demand.

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