European stocks rise thanks to optimism about earnings

European stocks rose on Thursday as strong quarterly earnings from ST Microelectronics, Sabadell and Nokia allayed concerns about corporate earnings season amid signs of a recession.

The pan-European Stoxx 600 index was up 0.6% by 0835 GMT, with technology and financial services shares leading the gains.

STMicroelectronics jumped 8.4% after the chipmaker reported more-than-expected sales in the fourth quarter of 2022.

Spanish lender Sabadell rose 8.8% after management’s optimistic comment on net interest income for 2024 despite a drop in fourth-quarter net profit.

Nokia shares rose 5.5% after the Finnish telecoms equipment maker beat its quarterly operating profit forecast and predicted higher sales in 2023.

Expectations have grown that the eurozone economy will witness a slowdown in growth, but without entering into a recession in 2023, thanks to the reopening of China and Europe’s ability to continue supplying electricity during the winter, in light of warmer weather and enhanced generation capacity.