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European stocks rise on tech sector support as banks tumble

European shares posted their biggest daily gain in a week on Friday, boosted by advances in the technology sector, while banks fell to their lowest level in the week, penalized by Société Générale, after a disappointing forecast.

The pan-European STOXX 600 index closed up 0.46% at 505.53 points, driven by a 1.6% advance in the technology sector following optimistic quarterly sales forecasts from US Apple.

However, the main index was set to decline weekly as investors eye earnings season and the European Central Bank’s (ECB) monetary policy outlook beyond June.

Counterbalancing the optimism, the banking sector slipped 0.8%, with Société Générale reversing early gains and falling 5.2% to the bottom of Paris’ CAC-40 index. The bank said its retail sector’s annual net interest income in France would be at the lower end of its guidance.

On the other hand, Credit Agricole SA rose 1% after a 55% jump in first-quarter net profit, beating forecasts.

“There is always a trade-off between net interest margins and the quality of the loan book, and both multipliers have been heavily influenced by the situation of the local economies in which they operate,” said Richard Flax, chief investment officer at Moneyfarm.

“The Eurozone has not been particularly strong and only a few banks have managed to (maintain) that profitability.”

IN LONDON the Financial Times index advanced by 0.51%, to 8,213.49 points.

IN FRANKFURT the DAX index rose by 0.59%, to 18,001.60 points.

IN PARIS, the CAC-40 index gained 0.54%, to 7,957.57 points.

IN MILAN the Ftse/Mib index collapses by 0.32%, to 33,629.21 points.

In MADRID, the Ibex-35 index recorded a decline of 0.16%, to 10,854.70 points.

IN LISBON, the PSI20 index depreciated by 0.25%, to 6,648.67 points.

Source: Terra

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