European shares are trading higher in the early afternoon Tuesday, boosted by tech stocks following a strong performance on the US Nasdaq exchange, Monday. Individual stock-related news is also helping to drive markets higher as political worries remain on the backburner.
By 1425 BST, the EUROSTOXX 600 was 0.19% higher, while the EUORSTOXX 50 had gained 0.32%. Regional bourses were all higher. The German DAX rose 0.75%, the French CAC was 0.35% in the green and the Spanish IBEX gained 0.14%.
Tech stocks gain
The US’ tech-heavy Nasdaq stock index closed at a record high in the US Monday. The index was buoyed by fresh highs for the Apple and Amazon stocks, which analysts say confirm the US economy is performing well.
European tech stocks that gained in the aftermath of that strong US performance include:
- Dutch chipmaker ASMI shares rose 5.67 to €2.67.
- European software firm, SAP shares were 1.62% higher at €99.37.
- German tech firm Infineon shares gained 3.54% to trade at €24.57.
- STMicroelectronics shares were 4.28% n the green at €21.18.
Those gains helped counter any weakness following confirmation that the pace of Euro Zone private sector growth slowed a little during May.
The final release of IHS Markit’s euro zone composite PMI, confirmed the slowdown to 54.1 in May from 55.1 in April.
“The pace of eurozone economic growth sank to a one-and-a-half year low in May and has now slowed continually since January’s peak to suggest that the region is on course for its worst quarter since 2016,” said IHS Markit’s chief business economist, Chris Williamson.
Other stock movers
Outside of the tech sector, there were other stock moves of note.
Italian energy subcontractor Saipem shares gained 1.07% to hit €3.79 after an upgrade from Morgan Stanley.
However, airlines lost ground, with Air France-KLM shares losing 4.56% to trade at €7.03, EasyJet shares falling 2.115 to £1,741 and British Airways owner, IAG shares down 2.78% at £684.80.