Tech lifts European shares as currency weakens; autos up (updated)

Danske Andelskassers Bank A/S

18/07/2018 10:23

* STOXX up 0.4 percent
    * Tech leads gainers on Ericsson, ASML updates
    * Autos rise ahead of EU trade visit to U.S
    * Upbeat Fed lifts sentiment

 (Adds details, updates prices)
    By Danilo Masoni
    MILAN, July 18 (Reuters) - European shares hit a one-month
high on Wednesday supported by currency weakness and a rally in
tech stocks following well-received earning updates and a record
close for the Nasdaq.
    The tech index  .SX8P  rose 2.1 percent with Ericsson
 ERICb.ST  up 9 percent after the mobile telecom equipment maker
unexpectedly swung to a modest operating profit, while
semiconductor bellwether ASML  ASML.AS  rose 5.3 percent on
forecast-beating results.
    Their gains and a positive assessment of the U.S economy
from Federal Reserve Chairman Jerome Powell on Tuesday drove the
pan-European STOXX 600  .STOXX  benchmark index upward for a
second day, putting it 0.4 higher by 0858 GMT.
    The upbeat remarks from Powell, who will continue his
testimony to Congress on Wednesday, lifted the dollar, which in
turn helped shares in Europe's export-oriented sectors rise.
    "Another bullish update with Powell once again talking up
the strength of the US economy could see the dollar extend its
gains from Tuesday's session," said Jasper Lawler, head of
research at London Capital Group.
    Auto stocks  .SXAP , which rely heavily on exports for
growth and have been penalised by concerns the United States
could introduce higher import tariffs, were among the best
performers.
    Traders said the sector was also supported by reports that
European Commission President Jean-Claude Juncker will visit
U.S. President Donald Trump in Washington on July 25 to discuss
strained trade ties.  urn:newsml:reuters.com:*:nL8N1UD4RI
    European automakers send around $50 billion worth of cars to
the United States and Trump has repeatedly threatened to raise
tariffs on car imports from Europe.
    Shares in BMW  BMWG.DE , which is the most exposed with up
to one fifth of its global sales heading to the United States,
rose 1 percent.     
    Britain's FTSE  .FTSE  rose 0.5 percent as the pound was
further weakened by worries about Prime Minister Theresa May's
ability to push through her Brexit plans.     
    Elsewhere, banks  .SX7P  fell 0.6 percent, dragged by a drop
of 8 percent in Danske Bank  DANSKE.CO  after the Danish
lender's second-quarter pretax profit fell short of
expectations.
    Among top gainers was Novartis  NOVN.S , which rose 2
percent following its earnings update. The Swiss heavyweight
drugmaker said it was on track for sales and profit growth this
year after posting strong second quarter results.  urn:newsml:reuters.com:*:nL8N1UE0P8

 (Reporting by Danilo Masoni, Editing by Kit Rees)
 ((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))