Eurostoxx 50:2,657.45 (+35.09) Frankfurt DAX:7,192.67 (+84.75) Paris CAC:3,694.95 (+44.24)

EUROPEAN STOCKS gained yesterday as companies from Novartis to International Business Machines reported earnings that beat estimates.

The Stoxx Europe 600 rallied 0.8 per cent at the close in London.

“Earnings are not too bad at all,” said Markus Huber, head of German sales trading at ETX Capital in London. “It is doubtful that even if the earnings season continues to go well stocks can break out to the upside as long as uncertainties like the potential default of Greece and the US debt ceiling is not solved. In the short term, however, stocks which beat estimates and raise forecasts should perform well.”

Spanish and Italian bonds yields surged yesterday, piling pressure on officials to end the turmoil. Spain sold €4.45 billion of 12-month and 18-month bills.

Novartis, the second-biggest stock in the Stoxx 600 by weighting, climbed 3.2 per cent to 51.05 Swiss francs as earnings excluding some costs climbed to $3.56 billion, or $1.48 a share.

Technology stocks were the best-performing group in the Stoxx 600 after IBM’s better-than-estimated earnings.

SAP, the world’s biggest maker of business software, gained 1.8 per cent to €41.10.

ASML Holding, Europe’s biggest semiconductor-equipment maker, climbed 3.2 per cent to €24.92.

Software, Germany’s second-biggest software maker, rose the most since January, surging 7.1 per cent to €34.13.

Nordea soared 5.7 per cent to 66.40 kronor, ending the longest falling streak in four months.

Renewable Energy climbed 10 per cent to 9.14 kroner as the Norwegian maker of solar energy components said second-quarter earnings before interest, taxes, depreciation and amortization rose to 871 million kroner from 455 million kroner a year earlier.

Alfa Laval surged 6.5 per cent to 139.40 kronor after the world’s largest maker of heat exchangers said second-quarter sales increased 23 per cent to 7 billion kronor.

Electrolux plunged 15 per cent to 123.10 kronor after saying second-quarter net income fell to 561 million kronor from 1.03 billion kronor a year earlier.

Husqvarna tumbled 11 per cent to 34.96 kronor. – (Bloomberg)