* FTSEurofirst and Euro STOXX 50 up 0.4 pct
* Richemont and ARM surge on solid earnings updates
* Concerns linger over global economy
* Some clients looking to sell into rallies
By Sudip Kar-Gupta
LONDON, April 23 European shares rose on
Tuesday, helped by solid earnings at luxury goods group
Richemont and chip designer ARM, which eased worries over the
global economy after weak Chinese economic data.
The pan-European FTSEurofirst 300 index rose 0.4
percent to 1,159.78 points, while the euro zone's blue-chip Euro
STOXX 50 index advanced 0.4 percent to 2,594.57
Richemont gained 5.2 percent, adding the most
points to the FTSEurofirst 300 index, after signalling that its
annual profit had risen by nearly a third from a year ago.
ARM surged 7.4 percent to top the FTSEurofirst 300
index after its first-quarter profit rise beat market
Hendrik Klein, who heads Swiss high-frequency trading and
asset management firm Da Vinci Invest AG, said it was worth
adding to "long" positions to bet on further gains for European
equities, despite a pull-back over the last month.
"I think that at these levels, you should look to slightly
build some 'long' positions," said Klein.
Klein said European equities looked attractively valued,
compared to U.S. equities.
According to Thomson Reuters Starmine data, the
"smartestimate" - which favours top-rated analysts - has a price
to earnings ratio of 12 for the next 12 months for the
pan-European STOXX 600 index.
This represents a cheaper valuation than a comparative
price-to-earnings ratio of 13.7 for the next 12 months for the
U.S. S&P 500 index, according to Starmine.
However, others were more cautious.
Concerns over the pace of the global economic recovery were
resurrected on Tuesday by data which showed a dip in China's
Germany, whose economy has proven relatively resilient in
the face of the euro zone's sovereign debt crisis, saw its
private sector shrink for the first time in five months in
April, data showed.
These economic headwinds have led many investors to expect a
pull-back on European equities in the second quarter after a
strong start to 2013.
The FTSEurofirst 300 index has risen 2 percent since the
start of 2013 but has slipped back 4 percent after reaching a
2013 peak of 1,209.05 points in mid-March.
Berkeley Futures associate director Richard Griffiths said
clients were buying "put" options to bet on a future market
fall, and had taken "puts" with a June maturity and strike
prices of 2,450 and 2,425 points on the Euro STOXX 50, implying
expectations that the Euro STOXX could fall to that level by
"We're still looking for any rallies to be sold here," said