European stocks open higher thanks to profits of tech sector

European stocks opened significantly higher on Wednesday, supported by technology shares, after software company SAP and chip manufacturing equipment manufacturer ASML Holding recorded strong profits.

According to Reuters, the European Stoxx 600 index rose 0.8% by 0818 GMT.

Investors are awaiting the profits that have begun to be announced, as the shares of the Dutch company ASML Holding rose about six percent after it exceeded fourth-quarter profit estimates and recorded its best quarterly orders.

SAP shares rose 7.7 percent after the German software company announced an increase in operating profits for 2023 and announced a restructuring plan for 2024 that will affect 8,000 jobs in a push towards artificial intelligence.

Technology stocks were the biggest gainers among sectors, rising 3.4%.

Appetite for risk was reinforced by statements from the Chinese Central Bank that it will reduce the amount of liquidity that banks must hold in reserves, starting from February 5, as policymakers strengthen their efforts to support the fragile economic recovery.

Shares of luxury companies with exposure to China, including LVMH, Kring Group and Richemont, rose between 0.7% and 1.9%.