Tech Shares, Corporate Earnings Lift European Stocks

(Reuters) – European stocks rose on Monday as gains in technology shares and upbeat earnings reports helped investors look past the possibility of extended lockdowns as many countries grapple with new variants of the novel coronavirus.

The pan-European STOXX 600 index rose 0.4% by 0810 GMT. The benchmark ended last week almost flat after data showed Europe’s dominant service sectors took a hard hit from renewed lockdowns in January.

Tech stocks gained the most, with their U.S. peers trading near all-time highs. Dutch technology investor Prosus jumped 7.9%, while chipmakers also climbed.

In corporate earnings, Dutch health technology company Philips gained 2.3% after it reported a 7% increase in fourth-quarter core profit.

Siemens Energy, which makes turbines for the power sector, rose 2.4% after it swung to a core profit in its fiscal first quarter.

French stocks struggled for gains amid talks of a third lockdown, while Italian stocks shrugged off newspaper reports that Prime Minister Giuseppe Conte is close to resigning.

Investors are awaiting the Ifo institute’s survey on German business climate in January. The numbers are expected to show a decline in business morale on the back of tighter restrictions.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)