Technology company profits lead the European STOXX 600 to the highest level in a week

European stocks surged on Tuesday, reaching their highest levels in over a week, driven by strong corporate earnings that instilled confidence among traders. The technology sector spearheaded the gains, with the Financial Times index in Britain hitting its all-time high.

As of 0712 GMT, the European STOXX 600 index climbed by 0.6 percent, fueled by a substantial increase of around two percent in technology company stocks.

Notably, SAP stock soared by 4.6 percent following the announcement of a 24 percent surge in cloud business revenues during the first quarter, totaling 3.93 billion euros ($4.19 billion). This growth was underpinned by robust demand for enterprise resource planning programs.

Shares of Novartis, the Swiss pharmaceutical giant, also saw a significant uptick of 4.6 percent after the company raised its full-year expectations, surpassing first-quarter results that outperformed expectations.

Conversely, Randstad, the world’s largest recruitment agency, reported disappointing quarterly core profits, resulting in a 6.7 percent decline in the Dutch company’s shares, placing it at the bottom of the STOXX 600 index.

Market attention now turns to the release of Eurozone manufacturing PMI data for April, which is expected to provide insights into the economic health of the bloc.

Meanwhile, the British Financial Times index, which predominantly comprises exporters, surged by 0.6 percent to reach its record high at 8,071.96 points.