Tech shares lift European stocks despite miners woes

European stocks edged slightly higher on Tuesday buoyed by strong earnings reports from tech giants like SAP and Logitech boosted the tech sector. This rise offset losses in the mining sector, which was weighed down by falling metal prices and Norsk Hydro’s disappointing earnings.

The pan-European STOXX 600 index gained 0.1 per cent as of 08:42 GMT, after posting its best day in over a month on Monday. Leading the charge was the technology sub-index, which surged 1.2 per cent on the back of positive earnings news.

SAP, Europe’s largest software maker, jumped 6.4 per cent, exceeding second-quarter revenue estimates and reporting a 25 per cent growth in its cloud business.

Logitech, the computer peripheral maker, also saw its stock rise 2.7 per cent after raising its full-year sales and profit forecast.

While tech stocks thrived, the mining sector faced a downturn. The STOXX 600 Metals & Mining index fell 1.4 per cent due to several factors. Norsk Hydro, a major aluminum producer, experienced an 18 per cent plunge in second-quarter profits, causing its share price to dive by 3.2 per cent.

Concerns about copper demand in China, a major consumer, put pressure on copper prices, further impacting mining stocks.

Givaudan, a Swiss fragrance and flavor maker, fell by 4.4 per cent after falling short of expectations for first-half sales growth.

Porsche AG and its parent company Porsche SE both witnessed their stock prices fall after the carmaker cut its annual sales forecast due to an unexpected alloy shortage.

Edenred, a French provider of vouchers and benefit cards, was the biggest loser on the STOXX 600, experiencing a 7.2 per cent dive following its first-half results report.

Attribution: Reuters