European shares up on Fed boost; autos, energy cap gains
Oct 31: European shares rose on Thursday after the US Federal Reserve cut interest rates, but a slump in auto and energy stocks kept gains in check as investors digested a fresh batch of earnings.
The pan-European STOXX 600 index rose 0.3per cent at 0820GMT led by gains in Milan's FTSE MIB .FTMIB but London's FTSE 100 .FTSE lagged.
The US federal reserve cut interest rates as expected but also signaled there would be no further reductions unless the health of the economy took an unhealthy turn.
The tech sector .SX8P got a boost from a near 9per cent rise in shares of Dutch semiconductor supplier ASM International (ASMI.AS) after it forecast a rise in quarterly sales for the fourth quarter.
Also lifting the mood was an upbeat outlook from iPhone maker Apple (AAPL.O) and an assessment from the world's largest memory chipmaker, Samsung (005930.KS), that demand for its chips would pick up next year.
Shares in Fiat Chrysler (FCHA.MI) jumped 10per cent and Peugeot owner PSA (PEUP.PA) dropped 9per cent after the two companies reached a deal to create the world's fourth-largest automaker. PSA had risen nearly 5per cent in the last three sessions in anticipation of the deal. -Reuters