European stocks rise as tech rally rolls on

But investors worry over impact of higher inflation on economic recovery

Photograph: iStock

Photograph: iStock

 

European stocks extended gains on Thursday, boosted by technology and mining stocks, on expectations of a strong earnings season even as investors fretted over higher inflation crimping an economic recovery.

The pan-European Stoxx 600 index rose 0.7 per cent by 0710 GMT, with miners jumping 2.1 per cent and tech stocks up 1.4 per cent.

European semiconductor companies including ASML, AMS and BE Semiconductor were among the top gainers after Taiwan chip giant TSMC posted a 13.8 per cent jump in third-quarter profit on the back of booming demand for semiconductors.

A debate over the transitory nature of inflation continued as China’s factory gate inflation rose in September to a record high on soaring commodity prices. Investors are awaiting US producer prices data later in the day. The reading is also expected to show a surge in prices.

French advertising group Publicis gained 2.9 per cent after it raised its outlook for 2021 as a global shift towards digital media and e-commence helped its third-quarter organic growth exceed market expectations. British rival WPP rose 0.6 per cent.

Dutch navigation and digital mapping company TomTom fell 7.0 per cent after it warned that supply chain problems in the auto sector could last until the first half of next year. – Reuters