European shares open higher on upbeat tech earnings

(Reuters) – European shares opened sharply higher on Wednesday, boosted by technology stocks after software firm SAP and chip-making equipment maker ASML Holding (AS:) posted strong earnings, while fresh stimulus from China’s central bank also aided sentiment.

The pan-European index was up 0.8%, as of 0818 GMT.

Investors eyed the earnings that rolled in, with Dutch company ASML Holding up nearly 6% on beating fourth-quarter earnings estimate and posting its best quarterly orders.

Shares in SAP added 7.7% after the German software firm reported 2023 operating profit beat and announced a restructuring plan for 2024 that will affect 8,000 roles, in a push towards AI.

Technology stocks were the top gainers among the sectors, up 3.4%.

Lifting risk appetite further, China’s central bank said it will cut the amount of cash that banks must hold as reserves from Feb. 5, as policymakers extend efforts to shore up a fragile economic recovery.

Shares of China-exposed luxury firms including LVMH, Kering (EPA:) and Richemont were up between 0.7% and 1.9%.