BERLIN, Jan 13 — European shares were little changed today as investors shifted their focus to the signing of an interim Sino-US trade deal later this week, while technology stocks rose on a clutch of brokerage upgrades and price-target bumps.
The benchmark European STOXX 600 index was unchanged by 0923 GMT.
The Phase 1 trade deal between the United States and China, due to be signed at the White House on Wednesday, marks the first step towards ending a bruising 18-month trade war between the world’s two largest economies.
Technology stocks led gains in the region, rising about 0.4 per cent. German software services provider SAP SE, the biggest stock on the index by market capitalisation, rose about 0.2 per cent after Citigroup raised its price target.
“It’s part of an ongoing momentum since late last year. You’ve got investors looking to buy themes by growth and technology is seen as a key growth sector,” said Neil Campling, analyst at private bank Mirabaud in London.
He added that technology would see increased buying in the early part of the year, with some help from factors such as waning trade and geopolitical tensions.
British security software maker Avast PLC was among the top gainers on the index, adding some 2.4 per cent after a JP Morgan upgrade. Swedish telecommunication technology maker Ericsson also rose after a Citigroup upgrade.
Technology conglomerate Siemens AG rose 0.3 per cent after Goldman Sachs resumed coverage of the stock with a “buy” rating.
Automobile stocks came under pressure after China lowered its annual sales forecast. French manufacturer Renault SA led declines on the index.
Renault was also the biggest loser on the STOXX 600, shedding 3.7 per cent.
Carmakers have grappled with weakening global demand for several years now, with slowing demand in the world’s second- largest economy serving to only exacerbate the situation.
The country’s top auto body reiterated predictions that sales will likely shrink for the third consecutive year in 2020. — Reuters
