European shares bounce led by chip-makers
LONDON, June 4
LONDON, June 4 (Reuters) - European shares rose on Tuesday, as a confident growth outlook from STMicroelectronics lifted chip-makers and investors took a recent pullback as a cautious buying opportunity.
The pan-European FTSEurofirst provisionally closed 0.3 percent higher at 1,211.07 points, having dropped 4 percent since May 23 after the U.S. Federal Reserve discussed slowing its open-ended monetary stimulus package in its monthly minutes.
"I'm firmly in the camp that the Fed aren't about to pull away from QE (quantitative easing) any time soon, so any pull back in the market will see buyers come in and try to latch on to this rally that they've missed so far." Joe Rundle, head of trading at ETX Capital, said.
Data on Tuesday showed that the U.S. trade deficit had widened, potentially strengthening the case for those expecting stimulus to continue, although volumes less than two-thirds of the 90-day average across European stocks suggested that investors were making the trade only tentatively.
"Bad is good and good is bad on the data front, and we're going to see a period of increased volatility... There'll be an upward, albeit choppy, trend, which is one for a brave investor." Rundle said.
STMicroelectronics rose 4.9 percent to top the FTSEurofirst 300 and peer Infineon climbed 1.8 percent after STM's chief executive, Carlo Bozotti, told the newspaper Le Figaro it expected growth of 5 to 10 percent this year.