European stocks rise with the support of the technology sector

European stocks rose on Wednesday, tracking improved sentiment in Asian markets following plans to break up Chinese tech giant Alibaba Group, while Swiss bank UBS rose after it reappointed Sergio Ermotti as CEO.

The Stoxx 600 index of European shares rose 0.6 percent by 0705 GMT, in line with gains in Asian stocks.

UBS shares rose 2.2 percent after the Swiss bank announced the appointment of Ermotti to lead the takeover of Credit Suisse. Credit Suisse rose 2.1 percent, while the financial services and banking indices gained about 1 percent each.

German Infineon shares jumped 5.1% after the chipmaker raised its forecasts for the second quarter of the fiscal year and for the whole of 2023. The technology sector index rose 1.7 percent, leading the gains of the sub-sector indices.

Mercedes-Benz shares fell 1.8 percent after news that Kuwait’s sovereign wealth fund intends to reduce its stake in the German luxury automaker by selling 20 million shares.