LONDON, June 4 (Reuters) - European shares rose on Tuesday, as a confident growth outlook from STMicroelectronics lifted chip-makers and investors took a recent pullback as a cautious buying opportunity.
The pan-European FTSEurofirst provisionally closed
0.3 percent higher at 1,211.07 points, having dropped 4 percent
since May 23 after the U.S. Federal Reserve discussed slowing
its open-ended monetary stimulus package in its monthly minutes.
“I’m firmly in the camp that the Fed aren’t about to pull
away from QE (quantitative easing) any time soon, so any pull
back in the market will see buyers come in and try to latch on
to this rally that they’ve missed so far.” Joe Rundle, head of
trading at ETX Capital, said.
Data on Tuesday showed that the U.S. trade deficit had
widened, potentially strengthening the case for those expecting
stimulus to continue, although volumes less than two-thirds of
the 90-day average across European stocks suggested that
investors were making the trade only tentatively.
“Bad is good and good is bad on the data front, and we’re
going to see a period of increased volatility… There’ll be an
upward, albeit choppy, trend, which is one for a brave
investor.” Rundle said.
STMicroelectronics rose 4.9 percent to top the FTSEurofirst
300 and peer Infineon climbed 1.8 percent after STM’s
chief executive, Carlo Bozotti, told the newspaper Le Figaro it
expected growth of 5 to 10 percent this year.
