Techs lead Europe stocks upwards
 |
Story Tools
|
PARIS, France (Reuters) -- Deutsche Telekom led European stocks higher Tuesday after reporting strong subscribers numbers at its key T-Mobile USA unit, while fresh signs of business recovery and a raft of broker upgrades buoyed the telecoms and technology sectors.
Wall Street's overnight close at levels last seen more than two-and-a-half years ago also lent support as investors cheered earnings reports that have generally been strong so far this reporting season.
Shares in Germany's Deutsche Telekom rose 2.4 percent to 16.8 euros, also boosted by talk from dealers that investment bank UBS raised its price target on the stock to 16.2 euros from 13.8 euros previously.
The company reported a 50-percent quarter-on-quarter increase in fourth-quarter subscriber numbers at its key T-Mobile USA unit.
UBS is also said to have increased its target on France Telecom to 24 euros from 21 euros, which helped boost its shares one percent to 24.83 euros.
Global mobile phone player Vodafone also contributed to the market's rise as its shares tacked on two percent.
French chipmaker STMicroelectronics and German peer Infineon also added about two percent each after Texas Instruments, the world's top maker of microchips for cell phones, posted a robust fourth-quarter profit and forecast current-quarter revenue above analysts' average estimate due to surging demand for wireless chips.
A rating upgrade from Citigroup Smith Barney to "hold" from "sell" also helped boost Infineon stock.
By 0820 GMT, the FTSE Eurotop 300 index of pan-European blue chips was 0.7 percent higher at 996 points, a hair below a 16-month high of 999.17 points set earlier this month, while the narrower DJ Euro Stoxx 50 index added 0.9 percent percent to 2,900 points.
"European markets should rise on the back of the U.S. close, all the more so if the Ifo index of business confidence comes to confirm a recovery in the German economy," said strategist Jean-Francois Himber from broker ETC Pollak Prebon.
A strengthening of the dollar, which edged up overnight on fears officials will move to curb the euro's strength, boosted European exporters such as carmakers.
German luxury carmaker BMW led sector gainers after posting forecast-beating 2003 revenues and repeated that it expected 2003 pretax profits to match 2002's level of 3.3 billion euros and again forecast higher unit sales in 2004.
Investors were waiting for a statement on interest rates and the U.S. economy from the Federal Reserve on Wednesday and U.S. economic growth data for the fourth-quarter on Friday.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
