(In paragraph 5, corrects analyst's name to .. Lee Simpson ..,
not.. Lee Robinson)
* FTSEurofirst 300, Euro STOXX 50 both up 0.1 pct
* Nokia top riser after HTC settlement
* Focus on guidance as Yellen speaks this week
By Tricia Wright
LONDON, Feb 10 European shares inched higher on
Monday, led by Nokia's gains after settling patent
claims with rival HTC and on relief that Wall Street
weathered weak U.S. jobs figures buoyed the broader market.
Finnish handset maker Nokia rose nearly 4 percent in brisk
trade after what analysts at Credit Suisse described as a
"benchmark win", which they see as paving the way for future
licensing deals and higher revenues for Nokia.
The stock was among the top risers on the pan-European
FTSEurofirst 300, up 0.1 percent at 1,300.87 points by
0855 GMT, the fourth straight session of gains for the index.
Trading volume in Nokia stood at more than half its 90-day
daily average, against the FTSEurofirst on about 10 percent.
"It shows that patent litigation can be settled. The wording
of the statement is a little vague but it seems as though it is
to be benefit of Nokia," Lee Simpson, an analyst a Jefferies,
"The longer-term juice is the implementation play, where
there could be future collaboration between Nokia and HTC.. and
I think that's what investors are buying."
Most Asian indexes made gains on Monday, led by Tokyo's
Nikkei, with the market looking ahead to U.S. Federal
Reserve chairman Janet Yellen's first testimony to the House on
Tuesday and the Senate on Thursday.
Yellen is expected to point to a longer-term trend toward
improvement in the labour market and to low but stable inflation
as reasons for steady reductions in Fed stimulus.
"The payrolls numbers are seen as less important to what the
Fed will say in response," Peel Hunt equity strategist Ian
"The consensus seems to be... (Yellen will) confirm that
she's fairly confident that the underlying recovery is solid
enough for tapering to continue and that view is reassuring."
A sell-off in emerging market assets, fuelled by signs of a
slowdown in China and a range of issues in other countries, had
pushed several European indexes to their most oversold levels in
many months last week.
The technical picture may be looking more robust, with the
Euro STOXX 50 - trading up 0.1 percent at 3,040.76 -
having closed above its 100-day moving average for the first
time since Jan. 30 on Friday, but earnings remain a cause for
STOXX Europe 600 firms yet to report are seen missing
consensus quarterly earnings forecasts by 1.6 percent on
average, according to Thomson Reuters StarMine SmartEstimates,
which focus on the up-to-date predictions of the historically
most accurate analysts.
This is a bad sign given the widely held view that Europe's
earnings must grow if markets are to continue to grind higher.
"To be absolutely confident that the uptrend is intact, you
need to get that bottom-up news improving a bit," Peel Hunt's
The STOXX Europe 600 trades on a 12-month forward
price/earnings ratio of 13.6 times against its 10-year average
of 11.9 times, Thomson Reuters Datastream shows.
Europe bourses in 2014: link.reuters.com/pad95v
Asset performance in 2014: link.reuters.com/rav46v
Today's European research round-up
(Additional reporting by Francesco Canepa; Editing by Louise