European shares extend winning streak on earnings boost

(Reuters) – European shares advanced on Wednesday, as risk appetite was supported by a slew of positive earnings updates, setting the benchmark index on track for its longest winning streak since November 2021.

The pan-European STOXX 600 was up 0.3% by 0815 GMT, boosted by rate-sensitive technology stocks.

Dutch semiconductor supplier ASM International NV jumped 7.7% on reporting fourth-quarter revenue ahead of its forecast, citing better-than-expected supply chain conditions and higher conversion of the backlog.

The benchmark index has gained nearly 7.5% in an upbeat start to the year, spurred by hopes of a rebound in China’s economy, easing price pressures, fall in natural gas futures and growing expectations of a milder-than-expected recession.

German Chancellor Olaf Scholz said in an interview with Bloomberg TV that he was convinced Europe’s largest economy would not fall into a recession, despite soaring energy and food prices in the wake of Russia’s invasion of Ukraine.

In other earnings-driven moves, luxury group Richemont rose 2.4% on reporting higher quarterly sales as tourists returned to Europe and Japan.

Shares of Europe’s largest meals delivery company Just Eat NV jumped 14.2% after the company confirmed putting profitability over growth even as its fourth-quarter orders slumped.

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sherry Jacob-Phillips)