Home ›› 19 Jan 2023 ›› Stock

European shares extend winning streak on earnings boost

Agencies . London
19 Jan 2023 00:00:00 | Update: 19 Jan 2023 00:22:39
European shares extend winning streak on earnings boost

European shares edged higher on Wednesday, supported by a slate of upbeat corporate earnings and outlook, setting the benchmark index on track for its longest winning streak since November 2021.

The pan-European STOXX 600 (.STOXX) was up 0.1% by 0910 GMT, extending gains for a sixth straight day on boost from rate-sensitive technology stocks (.SX8P) and industrials (.SXNP).

Dutch semiconductor supplier ASM International NV (ASMI.AS) jumped 8% on reporting fourth-quarter revenue ahead of its forecast, citing better-than-expected supply chain conditions and higher conversion of the backlog, reported Reuters.

Richemont (CFR.S) rose 2% on reporting higher quarterly sales as tourists returned to Europe and Japan. Still, the luxury group missed market estimates after sales in China plunged by almost a quarter.

“For luxury, China is quite important with more hopes of rebounding activity in the first half of this year,” said Emmanuel Cau, head of European equity strategy at Barclays Investment Bank.

“The numbers are bad, but I don’t think it should come as a big surprise given how bad China was in Q4. The market is probably right to look through the kind of short-term noise because the big picture is also direction of travel is towards more reopening in China.”