(by G. Anderson)

European stocks rose today after U.S. Federal Reserve Chairman Alan Greenspan said yesterday that consumer spending in Europe’s largest export market may pick up. Shares of Ericsson AB and Roche Holding advanced after both companies reported profit that topped analysts’ estimates.

The FTSE Eurotop 300 was up 1.1 per cent to 979.72, while Frankfurt’s Xetra Dax added 1.4 per cent to 3,890.65. In Paris, the CAC-40 was 1.3 per cent higher at 3,653.11 and London’s FTSE 100 climbed 1 per cent to 4,380.8.

Ericsson, the Swedish telecoms equipment maker, beat expectations with its second-quarter pre-tax profit of SKr7.8bn ($1.05bn) and kept to its earlier guidance of moderate growth in demand for mobile networks. The shares soared 9.1 per cent to SKr21.50. 

This helped lift Ericsson’s sector peers, boosting Alcatel 3.5 per cent to €11.81, Nokia 1.7 per cent to €9.99 and Siemens 2.6 per cent to €56.75.

The technology sector was the best performer in early trade, with chip stocks among the highest climbers. Infineon of Germany gained 2.8 per cent to €9.84, STMicroelectronics, the French manufacturer, added 2.7 per cent to €16.63, while ASML, the Dutch maker of chip manufacturing equipment, was up 2.8 per cent to €12.46.

Roche, the Swiss pharmaceuticals and healthcare group, was up 1 per cent to SFr128.25 after reporting first-half net income doubled from the same period a year ago, thanks largely to a one-off financial gain, but helped by a 15 per cent rise in prescription drugs sales. The company also said its targeted operating profit margin of 22 per cent would be achieved this year, two years earlier than forecast. See more