European shares advance as chipmakers rally; Ubisoft shines
By Shashwat Chauhan
(Reuters) -European shares rose on Tuesday, driven by technology stocks as chipmakers tracked an overnight Wall Street rally ahead of Nvidia (NASDAQ:NVDA)'s earnings, while Ubisoft jumped after Activision sold its non-European streaming rights to the French company.
The pan-European STOXX 600 added 0.9%, tracking a 1% gain in the tech-heavy Nasdaq.
The technology sector gained 2% as chip stocks rallied on optimism surrounding the world's most valuable chipmaker Nvidia ahead of its quarterly results on Wednesday.
Shares of Amsterdam-listed chipmakers ASML Holding (NASDAQ:ASML) N.V., ASM International (OTC:ASMIY) N.V and BE Semiconductor Industries N.V. gained between 2.6% and 3.2%.
Paris-listed shares of Franco-Italian chipmaker STMicroelectronics added 2.5%.
Ubisoft Entertainment advanced 6.7% to the top of STOXX 600 as it will buy the non-European streaming rights of «Call of Duty» maker Activision, potential owner Microsoft (NASDAQ:MSFT) said.
Copenhagen stocks jumped 1.2% as shares of Novo Nordisk (NYSE:NVO), Europe's second most valuable listed company, gained 1.6%.
European miners added 1.2%, tracking higher metal prices. [MET/L]
Investors now keenly await the Jackson Hole Symposium later this week, where European Central Bank President Christine Lagarde and Federal Reverse Chair Jerome Powell are expected to provide clues about the interest rate outlook.
«In terms of expectations, I think Jerome Powell is going to reiterate the need for a strong policy setting,» said Patrick Farrell, chief investment officer at Charles Stanley.
«He's not going to want to give the markets too much optimism at this particular point.»
Traders have nearly priced in that the Fed will hold rates at its next meeting,
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