STMicro growth boost helps European shares rebound
LONDON, June 4
LONDON, June 4 (Reuters) - European shares snapped a two-day losing streak on Tuesday, led higher by chipmaker STMicroelectronics after it guided for full-year order growth.
Traders said STM's shares were in demand after the group's chief executive, Carlo Bozotti, told Le Figaro newspaper that the company expects order growth of 5 to 10 percent this year after a 5 percent increase in the first quarter.
It topped the pan-European FTSEurofirst 300 index, which was up 0.7 percent at 1,215.37 points, taking its cue from positive closes for U.S. and Japanese stocks after two negative sessions in Europe.
The euro zone Euro STOXX 50 index was up 0.9 percent at 2,775.70 points.
"With (positive) closes in the U.S. and Japan we'll try to recover today," said Ouri Mimran, a technical strategist at Natixis in Paris, who recommended his clients to bet on a tactical rebound in Japan's Nikkei index.
"A break above yesterday's high (on the Euro STOXX 50) will give the bullish signal I'm expecting but I'd prefer to wait for a confirmation because the European close was quite weak yesterday."
He said the Euro STOXX 50 remained in a bullish medium-term trend as long as it kept above the 61.8 percent retracement of its April-to-May rally at 2,660 points.
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