European stocks gain thanks to optimism about earnings

European stocks rose today, Thursday, as strong quarterly results from ST Microelectronics, Sabadell and Nokia allayed concerns about the corporate earnings season amid signs of a recession.

According to “Reuters”, the European Stoxx 600 index rose 0.6 percent by 0835 GMT, and technology and financial services shares led the gains.

STMicroelectronics jumped 8.4% after the chipmaker reported more-than-expected sales in the fourth quarter of 2022.

Spanish lender Sabadell rose 8.8 percent after management’s optimistic comment on net interest income for 2024 despite a drop in fourth-quarter net profit.

Nokia shares rose 5.5 percent after the Finnish telecom equipment maker beat forecasts for quarterly operating profit and predicted higher sales in 2023.

And expectations have grown that the eurozone economy will witness a slowdown in growth, but without entering into a recession in 2023, thanks to the reopening of China and Europe’s ability to continue electricity supplies during the winter, in light of warmer weather and enhanced generation capacity.