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Wall St bounce, upbeat earnings lift European stocks

01/20/2021 | 04:58am EDT

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* European tech stocks hit 20-year peak

* Luxury stocks gain on upbeat Richemont earnings

* Investors eye big stimulus as Biden takes office

Jan 20 (Reuters) - European stocks rose on Wednesday after Dutch chip equipment maker ASML and Swiss luxury group Richemont gave encouraging earnings updates, while investors hoped for a large U.S. stimulus plan as Joe Biden was sworn in as president.

The pan-European STOXX 600 index closed 0.7% higher, getting an extra boost as Wall Street marked record highs.

All eyes were on Biden's inauguration as the 46th U.S. President, with traders betting on a bigger pandemic relief plan and higher infrastructure spending under the new administration to boost the pandemic-stricken economy.

Tech stocks rallied to a two-decade peak in Europe after ASML Holding NV rose 3.0% to all-time highs on better-than-expected quarterly sales and a strong order intake for 2021.

Meanwhile, Richemont rose 2.8%, after posting a 5% increase in quarterly sales as Chinese splashed out on Cartier, its flagship jewellery brand.

Britain's Burberry jumped 3.9% after it stuck to its full-year goals, saying higher full-price sales would boost annual margins, while Asian demand remained strong.

The pair boosted European luxury goods makers that are heavily reliant on China, with LVMH and Kering gaining between 1% and 3%.

"Any sign that retail spending is picking up in China is going to be a boost to the Western markets and those heavily exposed to it," said Connor Campbell, financial analyst at SpreadEx.

The European Central Bank is set to meet on Thursday. While no policy changes are expected, the bank could face more questions about an increasingly challenging outlook only a month after it unleashed fresh stimulus to bolster the euro zone economy.

"With the new round of easing measures fully in place and no new forecasts to be presented tomorrow, it should be a fairly uneventful day for the euro," ING analysts said in a note.

Italy's FTSE MIB gained 0.9% and lenders rose 1.6% after Prime Minister Giuseppe Conte won a confidence vote in the upper house Senate and averted a government collapse.

Conte narrowly secured the vote on Tuesday, allowing him to remain in office after a junior partner quit his coalition last week in the midst of the COVID-19 pandemic.

Daimler AG jumped 4.2% after its Mercedes-Benz brand unveiled a new electric compact SUV, the EQA, as part of plans to take on rival Tesla Inc.

Germany's Hugo Boss added 4.4% after Mike Ashley-led Frasers said it boosted its stake in the company. (Reporting by Sruthi Shankar and Amal S in Bengaluru; Editing by Shailesh Kuber and Arun Koyyur and Kirsten Donovan)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ASML HOLDING N.V. 4.18% 533 Real-time Quote.28.79%
AUSTRALIAN DOLLAR / EURO (AUD/EUR) 0.34% 0.64382 Delayed Quote.2.35%
BURBERRY GROUP PLC 2.49% 2055 Delayed Quote.12.04%
CANADIAN DOLLAR / EURO (CAD/EUR) 1.11% 0.666276 Delayed Quote.3.02%
COMPAGNIE FINANCIÈRE RICHEMONT SA 2.37% 95.06 Delayed Quote.15.91%
DAIMLER AG -0.50% 73.31 Delayed Quote.27.51%
FRASERS GROUP PLC 2.79% 507.5 Delayed Quote.9.48%
FTSE MIB 0.18% 24129.86 Delayed Quote.8.35%
HUGO BOSS AG 7.39% 38.07 Delayed Quote.29.90%
LVMH MOËT HENNESSY LOUIS VUITTON SE 3.49% 626.5 Real-time Quote.18.48%
PERNOD RICARD 0.52% 172.6 Real-time Quote.9.53%
STOXX EUROPE 600 0.70% 436.87 Delayed Quote.8.71%
STOXX ITALY 20 (EUR) 0.37% 1044.11 Delayed Quote.7.82%
STOXX ITALY 45 (EUR) 0.13% 108.59 Delayed Quote.8.28%
STOXX ITALY TMI (EUR) 0.14% 111.61 Delayed Quote.8.65%
TESLA, INC. -0.84% 713.3752 Delayed Quote.1.89%
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