Published : 4 years ago, on 20/01/2021

By Amal S and Sruthi Shankar

(Reuters) – European stocks rose on Wednesday after chip equipment maker ASML and Swiss luxury group Richemont gave encouraging earnings updates, while investors hoped for a big U.S. fiscal relief package as Joe Biden takes over as the next president.

The pan-European STOXX 600 index rose 0.5%, with the technology sector gaining 1.4% to its highest level in nearly two decades.

ASML Holding NV rose 2.4% after it posted better-than-expected fourth-quarter sales and said it had seen a strong order intake for 2021.

Technology stocks also looked set to boost Wall Street at the open, with Nasdaq futures jumping 0.6% on the back of Netflix’s stellar subscription growth numbers.

“It’s potentially a case of rising tide lifts all ships, that might be the case with Netflix’s results and tech sector,” said Connor Campbell, financial analyst at SpreadEx.

Luxury stocks got a boost after Richemont posted a 5% increase in quarterly sales, led by strong growth at its jewellery brands in Asia Pacific and the Middle East.

The group’s stock rose 1.3%, rival Swatch Group gained 1.1%, while Britain’s Burberry jumped 4.5% after it posted a sales growth of 11% in Asia Pacific in the third quarter.

“Any sign that retail spending is picking up in China is going to be a boost to the Western markets and those heavily exposed to it,” said Campbell.

European bourses mirrored an upbeat mood in global markets after U.S. Treasury Secretary nominee Janet Yellen called for big fiscal spending to support the pandemic-stricken economy.

All eyes will be on Biden’s inauguration as U.S. President at noon in Washington (1700 GMT), with traders more focused on his policies.

Italy’s FTSE MIB gained 0.6% and lenders rose 1.7% after Prime Minister Giuseppe Conte won a confidence vote in the upper house Senate on Tuesday.

Among other stocks, Germany’s Hugo Boss added 5.8% after Mike Ashley-led Frasers said it boosted its stake in the company.

Telia Co AB jumped 4​​​​​​​% after the Nordic telecom operator reported better-than-anticipated operational cash flow in 2020.

(Reporting by Sruthi Shankar and Amal S in Bengaluru; Editing by Shailesh Kuber and Arun Koyyur)