Technology stocks get boost from Dell results

Eurostoxx 50: 2,867.30 (+17.70) Frankfurt DAX: 7,303.53 (+46.88) Paris CAC: 3,978.00 (+36.42)EUROPEAN SHARES ended higher yesterday, with gains in commodity stocks buoying up the index and technology firms lifted by strong results from US computer maker Dell.

The session proved choppy, however, unsettled by worries over the euro zone’s debt problems after the IMF warned Greece that it needed to accelerate reforms and euro zone officials dismissed suggestions of a modest debt restructuring for the country.

The pan-European FTSEurofirst 300 index of top shares closed up 0.4 per cent at 1,130.89 points in limited volume that was just 79.8 per cent of its 90-day average, while Greek shares fell to close at 1.4 per cent.

The European market got an afternoon rally after Wall Street rose, following computer maker Dell’s results, helping to improve sentiment for European technology stocks such as chip makers.

The Stoxx Europe 600 Technology index gained 0.8 per cent, with chip maker ARM up 3.7 percent.

Uncertainty remained over possible solutions to Greek debt problems.

The main market worry is that any restructuring could have contagion effects beyond Greece’s borders, and the size of the haircut needed to stabilise debt ratios would have to be sizeable and could hurt European banks holding Greek bonds.

Standard Life said “in the medium to longer term, we are underweight European equities”, due to the euro zone peripheral debt concerns.

The market also remained nervous about the Federal Reserve QE2 stimulus programme, which is expected to come to an end in June, and investors will eye the release of the Federal

On the upside, miners and oil and gas stocks supported the market in response to a rebound in metal and oil prices.

BG Group was up 3.1 per cent, and BP up 1.4 per cent.

The Stoxx Europe 600 Basic Resources index was up 0.7 per cent, with Eurasian Natural Resources, Kazakhmys and Anglo American gaining 2.1 to 4.3 per cent.

The stock featured as top performer on the German DAX, which was up 0.7 per cent. The French CAC index gained 0.9 per cent. – (Reuters)