European shares closed slightly higher on Tuesday, driven by a surge in technology stocks after robust earnings from SAP, which offset declining resource-linked stocks affected by lower commodity prices.
The pan-European STOXX 600 index gained 0.1%, building on Monday’s best day in over a month. SAP soared 7.2% to an all-time high, buoyed by better-than-expected quarterly operating income, lifting the technology sub-index by 1.4%.
Germany’s DAX outperformed, climbing 0.8% on SAP’s strength. Chip stocks like ASML, ASMI, and BESI also saw gains between 1.2% and 4.2%.
British caterer Compass Group rose 4.5% after raising its profit and revenue forecasts, contributing to a mixed earnings season where STOXX 600 companies are expected to see a 0.8% decline in second-quarter earnings.
Conversely, Norsk Hydro fell 4.7% after reporting an 18% drop in core profit, dragging the mining index down 1.7%. Declining base metal and crude oil prices further pressured resource-linked stocks, with energy shares down 1%.
French company Edenred plummeted 13.5% after its quarterly revenue growth fell below 20%. Thales slipped 6.7% due to margin concerns, and Porsche AG dropped 5.1% following a profit forecast cut.
New macroeconomic data will inform the European Central Bank’s September policy reassessment, according to Vice President Luis de Guindos.
