Chipmaker helps Euro stocks rebound after two-day fall
EUROPEAN shares halted a two-day losing streak this morning, led higher by chipmaker STMicroelectronics after it guided for full-year order growth.
Traders said STM's shares were in demand after the group's chief executive, Carlo Bozotti, said the company expected order growth of 5 to 10pc this year after a 5pc increase in the first quarter.
It topped the pan-European FTSEurofirst 300 index, which was up 0.7pc at 1,215.37 points, taking its cue from positive closes for US and Japanese stocks after two negative sessions in Europe.
The euro zone Euro STOXX 50 index was up 0.9pc at 2,775.70 points.
"With (positive) closes in the US and Japan we'll try to recover today," said Ouri Mimran, a technical strategist at Natixis in Paris, who recommended his clients to bet on a tactical rebound in Japan's Nikkei index.
"A break above yesterday's high (on the Euro STOXX 50) will give the bullish signal I'm expecting but I'd prefer to wait for a confirmation because the European close was quite weak yesterday."
He said the Euro STOXX 50 remained in a bullish medium-term trend as long as it kept above the 61.8pc retracement of its April-to-May rally at 2,660 points.