By Pranav Kashyap and Shristi Achar A
(Reuters) – European shares edged higher on Tuesday as a rally in technology-related shares following robust earnings from SAP and Logitech offset losses in miners.
The pan-European STOXX 600 index was up 0.1%, as of 0842 GMT, after posting its best day in more than a month on Monday.
Earnings updates from technology-related companies helped lift the index, with SAP jumping 6.4% on Tuesday after Europe’s largest software maker reported a 25% jump in its cloud business and beat estimates for second-quarter revenue.
The German benchmark index DAX gained 0.6%, outperforming the region’s bourses on the back of SAP’s gains.
Logitech’s shares advanced 2.7% after the computer mouse maker raised its full-year sales and profit forecast.
The technology sub-index, which houses both the stocks, gained 1.2%.
European shares have been paring past week’s losses as markets assess political developments in the United States and shift their focus to the earnings season.
“Joe Biden pulling out of the (U.S. presidential) race gives a bit more confidence to investors,” said Christopher Peters, trading floor manager at Accendo Markets.
“Corporate earnings is going to have more of an impact on markets for the next few weeks.”
Norsk Hydro’s shares were down 3.2% after the aluminium producer posted an 18% fall in second-quarter core profit, dragging metal miners down 1.4%.
The sector also weighed on the benchmark index as copper prices came under pressure due to concerns over top consumer China’s demand outlook. [MET/L]
Givaudan also weighed on the benchmark index with a 4.4% decline after the Swiss fragrance and flavour maker’s first-half sales growth slowed. The chemicals sector dropped 1.1%.
Among other stocks, Porsche AG fell 4.6%, after the German carmaker cut its annual sales forecast due to a surprise alloy shortage. Parent Porsche SE also fell 2.7%.
Edenred slumped 7.2% and was the top loser on STOXX 600 after the French vouchers and benefit cards provider reported first-half results.
Meanwhile, new data and macro-economic projections will help the European Central Bank reassess its monetary policy stance in September, ECB Vice President Luis de Guindos said in an interview with Europa Press.
(Reporting by Pranav Kashyap and Shristi Achar A in Bengaluru; Editing by Sherry Jacob-Phillips and Shounak Dasgupta)
