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April 5, 2011, 12:23 p.m. EDT

Technology shares help Europe edge up

Shares of banking giant Barclays PLC slip in London trade

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By Aude Lagorce, MarketWatch

LONDON (MarketWatch) — European markets edged higher Tuesday, helped by a rally in technology shares on the back of the Texas Instruments Inc. deal for National Semiconductor Corp.

The Stoxx Europe 600 index  spent most of the session around the unchanged mark but finished up 0.2% at 280.9. The benchmark advanced 0.1% on Monday as several deals were announced.

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Still, Bernard McAlinden, strategist at NCB Stockbrokers, said he was a bit surprised European markets didn’t get more of a lift from Texas Instruments’ /zigman2/quotes/202237907/composite TXN -0.19%  purchase, announced late Monday, of arch rival National Semiconductor  for $6.5 billion in cash. Read about TI’s deal for National Semiconductor.

“We have had a string of deals over the past few days and it’s getting harder to impress the markets,” he said.

Sentiment in Europe has been muted over the past few sessions. It is kept in check by expectations of an interest-rate hike by the European Central Bank on Thursday as well as the start of a new earnings season, where commodity-price increases may have had a bigger impact in some sectors, McAlinden said.

Tech sector rallies

The technology sector was a top positive contributor in Europe.

Shares of German chip maker Infineon Technologies AG /zigman2/quotes/204995926/delayed DE:IFX +0.94%  rose 3.9% and STMicroelectronics N.V. /zigman2/quotes/203551318/delayed IT:STM +1.71%  advanced 2.9%, while British microchip designer ARM Holdings PLC  gained 2.6%.

“We expect the Texas Instruments-National Semi transaction to be only the beginning, with more deals ahead,” Cheuvreux analysts wrote in a note to clients. “Most semiconductor vendors are flush with cash while facing well utilized, sometimes even tight capacity.”

The broker said the likes of STMicroelectronics and Infineon are likely to play the role of consolidators, targeting smaller vendors such as Dialog Semiconductor /zigman2/quotes/203017921/delayed DE:DLG +3.32% , Micronas Semiconductor Holding , Elmos Semiconductor AG /zigman2/quotes/204127742/delayed DE:ELG -0.47%  , CSR PLC , Nordic Semiconductor ASA /zigman2/quotes/206653118/delayed NO:NOD -0.73%   and Wolfson Microelectronics PLC  .

Wolfson surged 5.1%, Nordic was up 2.8% and CSR gained 3.1%.

On the downside, the telecommunications sector was weighing on the Stoxx 600.

Shares of Belgian mobile operator Mobistar SA  declined 1.8% after Credit Suisse cut its rating on the stock to underperform from neutral. TeliaSonera AB , which was also downgraded to underperform, dropped 1.1% and shares of Vodafone Group PLC /zigman2/quotes/202484985/delayed UK:VOD -0.88%   /zigman2/quotes/202862751/composite VOD -1.34%  slipped 1.5%, extending modest losses posted Monday when the firm announced it had sold its stake in French mobile operator SFR to Vivendi SA /zigman2/quotes/202179234/delayed FR:VIV +0.08% .

Regional indices

In France, the CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 -0.23%  finished roughly unchanged at 4,041.74. The top decliner was utility Electricite de France SA /zigman2/quotes/201783867/delayed FR:EDF -0.61%  , which lost 3.7% as the French government announced a deceleration in planned electricity-tariff increases to help mitigate the impact of higher energy costs on French households. Shares of GDF Suez SA fell 1.9%

/zigman2/quotes/202237907/composite
US : U.S.: Nasdaq
$ 141.67
-0.27 -0.19%
Volume: 1.45M
Sept. 29, 2020 2:23p
P/E Ratio
26.57
Dividend Yield
2.88%
Market Cap
$130.01 billion
Rev. per Employee
$528,105
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/zigman2/quotes/204995926/delayed
DE : Germany: Frankfurt
24.12
+0.23 +0.94%
Volume: 11,941
Sept. 29, 2020 7:54p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€194,374
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/zigman2/quotes/203551318/delayed
IT : Italy: Milan
26.19
+0.44 +1.71%
Volume: 2.71M
Sept. 29, 2020 5:35p
P/E Ratio
26.98
Dividend Yield
0.55%
Market Cap
€22.92 billion
Rev. per Employee
€178,260
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/zigman2/quotes/203017921/delayed
DE : Germany: Frankfurt
37.03
+1.19 +3.32%
Volume: 330.00
Sept. 29, 2020 4:22p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/204127742/delayed
DE : Germany: Frankfurt
21.05
-0.10 -0.47%
Volume: 0.00
Sept. 29, 2020 5:23p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€216,359
loading...
/zigman2/quotes/206653118/delayed
NO : Norway: Oslo
kr 95.30
-0.70 -0.73%
Volume: 485,921
Sept. 29, 2020 4:25p
P/E Ratio
124.66
Dividend Yield
N/A
Market Cap
kr18.31 billion
Rev. per Employee
kr3.22M
loading...
/zigman2/quotes/202484985/delayed
UK : U.K.: London
103.06 p
-0.92 -0.88%
Volume: 41.44M
Sept. 29, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
7.64%
Market Cap
£27.90 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202862751/composite
US : U.S.: Nasdaq
$ 13.30
-0.18 -1.34%
Volume: 3.48M
Sept. 29, 2020 2:23p
P/E Ratio
N/A
Dividend Yield
7.52%
Market Cap
$35.83 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202179234/delayed
FR : France: Euronext Paris
23.86
+0.02 +0.08%
Volume: 2.50M
Sept. 29, 2020 5:35p
P/E Ratio
15.66
Dividend Yield
2.51%
Market Cap
€27.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,832.07
-11.20 -0.23%
Volume: 73,788
Sept. 29, 2020 6:05p
loading...
/zigman2/quotes/201783867/delayed
FR : France: Euronext Paris
8.75
-0.05 -0.61%
Volume: 2.02M
Sept. 29, 2020 5:36p
P/E Ratio
19.16
Dividend Yield
1.71%
Market Cap
€27.28 billion
Rev. per Employee
€416,044
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