European shares rise, buoyed by a Rebound in Technology Shares

European shares rose on Tuesday, with investors returning to the technology sector after declining for seven days due to fears of rising interest rates. A group of positive corporate results also supported stocks.

The pan-European Stoxx 600 index rose 1.1 after US stocks rose in late trading, supporting Asian stocks.

The European technology stocks index rose 2.4 percent, with almost all stocks rising after the index fell 3.6 percent, close to its lowest level in three months in the previous session.

European shares have retreated far from the record highs recorded at the beginning of this month, under pressure from high bond yields, inflation, and an increase in Covid-19 cases, while investors are looking for signs of tightening monetary policy.

Philip Lane, the chief economist at the European Central Bank, said that the bank does not expect inflation in the euro area to exceed 2 percent in the medium term.

Profits of STOXX companies are expected to jump 49.3 percent in the fourth quarter to 109.1 billion euros ($123.7 billion) compared to the corresponding period of the previous year, according to Refinitiv data.

German Delivery Hero shares rose 5.6% on Tuesday after it said it expects to stop losses during the second half of 2022, with increased demand for the delivery service since the pandemic began.

Shares of Nokia telecommunications 2.6 percent after it said it expected a higher-than-expected profit.