European stocks extend gains, technical lead

(Reuters) – European shares rose on Tuesday, extending gains from the previous session, driven by a historic reversal in Britain’s fiscal plan, with investors closely watching earnings reports to gauge the economic outlook.

The region-wide STOXX 600 was up 0.5% at 0705 GMT, rising for a fourth straight session, led by tech stocks, with shares of chipmakers including ASML Holdings and BE Semiconductor up 0.9% to 3%.

Sentiment was also boosted by reports that the Bank of England may delay the sale of billions of pounds of government bonds to encourage more stability in the battered Phnom Penh market.

In the face of decades of high inflation and an increased risk of recession in Europe due to the energy crisis, central banks have aggressively tightened monetary policy, and markets are analysing corporate forecasts to gauge the impact of macro pressures.

France’s Publicis rose 3.8 percent after the world’s third-largest advertising group raised its full-year outlook for the second time this year.

Shares of Swiss drugmaker Roche fell 1.5% as its quarterly sales fell due to a slump in COVID-19 treatments and diagnostic tests.

Rio Tinto, which expects annual iron ore shipments to be at the low end of its forecast amid weaker global demand, fell 0.3%.

(Reporting by Amruta Khandekar in Bengaluru; Editing by Dhanya Ann Thoppil)

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