European stocks rise to 6-week highs on positive corporate earnings, sectoral strength


(MENAFN) European Stocks
surged on Tuesday, marking their most significant daily gain in six weeks, as investor sentiment was buoyed by robust performance across retail and Technology
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sectors. The European STOXX 600 index
rallied by 1.1 percent, with Technology
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Stocks
leading the charge, boasting a 2.6 percent increase. Notably, SAP, a German tech giant, reported a remarkable 24 percent surge in revenues from cloud services in the first quarter, totaling 3.93 billion euros (USD4.19 billion), attributed to robust demand for ERP software. This Stellar
performance propelled SAP's shares up by 5.3 percent, contributing to the overall bullish sentiment in the market
.

Italian Stocks
outperformed their European counterparts, while the British FTSE 100 index
reached unprecedented highs for the second consecutive day, benefiting from the weakness of the pound sterling and positive corporate earnings
reports. The retail sector index
surged by 2.2 percent, with H&M shares climbing by 4.2 percent following an upward revision in the target price by Morgan Stanley. Additionally, Swedish banking
services platform
NordNet emerged as the top performer in the STOXX 600 index
, posting gains of nine percent after surpassing expectations with its first-quarter operating profits.

Associated British Foods witnessed a notable uptick of nine percent in its shares after the company, owner of Primark, anticipated "significant growth" in profits for the full year, bolstering investor confidence in the retail sector. The rally in European Stocks
signaled a rebound from recent lows, with concerns over escalating conflict in the Middle East subsiding, coupled with positive corporate earnings
announcements and growing expectations of interest rate cuts.

Data from London Stock Exchange groups revealed a forecasted decline of 12.1 percent in first-quarter profits compared to the previous year. Despite this, market
sentiment remained largely positive, driven by the optimism surrounding strong corporate performances and the prospect of monetary policy support. The robust showing of European Stocks
underscored resilience in the face of geopolitical uncertainties, with investors increasingly focusing on fundamentals and earnings
outlooks to guide their investment
decisions in the current market
environment.

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