By Steve Goldstein
The technology sector led European stocks higher, after positive results from microchip makers Micron Technology and STMicroelectronics.
Infineon Technologies /zigman2/quotes/203152288/delayed XE:IFX -1.60% rose 7% in Germany, after Micron /zigman2/quotes/205710729/composite MU +5.45% 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 /zigman2/quotes/203551318/delayed IT:STM -2.73% 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.
The broader Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.78% rose 0.5%, extending its rise to 3% in the new year.
U.S. stocks /zigman2/quotes/210599714/realtime SPX +1.95% opened higher, with equities little moved by data showing the first decline in jobs in the U.S. since April .
“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 /zigman2/quotes/207049334/delayed UK:TUI -5.34% jumped 21% in London trade, after announcing it would sell €544.6 million of discounted shares to help pay off debts.