Tech stocks lead European markets higher after STMicroelectronics and Micron results

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Tech stocks lead European markets higher after STMicroelectronics and Micron results


The technology sector led European stocks higher, after positive results from microchip makers Micron Technology and STMicroelectronics.

Infineon Technologies
IFX,
+5.72%

rose 6% in Germany, after Micron
MU,
+2.59%

not only beat expectations but also said there were shortages of components. “We believe that readacross is positive in particular for Infineon which still has available capacity while the shortage should support the price-mix,” said Gianmarco Bonacina, an analyst at Italian broker Equita.

STMicro
STM,
+3.18%

shares surged 4% in Milan, as the company said fourth-quarter revenue would be $3.24 billion, which was above the $3.02 billion consensus estimate. Demand for personal electronics and automotive products resulted in “significantly better than expected market dynamics,” the company said.

Other European-listed technology firms including BE Semiconductor
BESI,
+3.83%

and ASML
ASML,
+3.18%

advanced.

The broader Stoxx Europe 600
SXXP,
+0.59%

rose 0.5%, extending its rise to 3% in the new year.

U.S. stock futures
ES00,
+0.26%

edged higher, ahead of the U.S. nonfarm payrolls report for December.

“This week’s strong performance for markets somewhat belies the underlying economic picture, which has seen the U.K. and Germany post ever increasing infection and death rates over the past few days, while the political turmoil on Capitol Hill has painted a picture of a U.S. that is increasingly riven by partisan division,” said Michael Hewson, chief market analyst at CMC Markets U.K.

Of other stocks on the move, German travel firm TUI
TUI,
+33.78%

jumped 35% in London trade, after announcing it would sell €544.6 million of discounted shares to help pay off debts.



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