RTTNews - The European markets rose for the third day on Wednesday, as technology stocks rallied after Intel Corp. reported better-than-expected second quarter results and gave an upbeat revenue forecast for the current quarter, while mining and energy stocks gained on firmer copper and crude oil prices.
In economic news, the U.S. Labor Department said consumer prices climbed 0.7% in June compared to the previous month. In May, the figure was up 0.1%. Economists had projected an advance of about 0.6%.
Core prices, which exclude the volatile food and energy sectors, advanced 0.2% compared to the previous month. This followed a 0.1% increase for May. Economists had expected June consumer prices to rise 0.1%.
The U.S. Federal Reserve said in a report that industrial production fell 0.4% in June following a revised 1.2% decrease in May. Economists had expected production to fall by 0.6% compared to the 1.1% drop originally reported for the previous month.
Crude for August delivery rose $1.59 to $61.11 a barrel on the New York Mercantile Exchange, by the time the European markets closed, after a government report showed that U.S. crude supplies dropped more than expected.
The FTSEurofirst 300 index of pan-European blue chips closed 2.76% higher at 863.32 points, while the narrower DJ Stoxx 50 index rose 2.79% to 2,141.90 points.
Around Europe, the U.K.'s FTSE 100 index rose 2.57% to 4,346.46, while France's CAC 40 index surged up 2.90% to 3,171.27 and Germany's DAX index climbed 3.07% to 4,928.44.
STMicroelectronics, Europe's biggest chipmaker, climbed 7.3% and Infineon, the second biggest, jumped 8.1% after Intel, the world's biggest chipmaker, yesterday reported better-than-expected second quarter results and forecast third quarter revenue above analysts' estimate.
ASML, Europe's biggest semiconductor equipment maker surged up 4.7% after the company said it expected third quarter sales of around ?450 million, up from ?277 million in the second quarter.
Mining stocks gained after copper prices rose to one-month high in New York. BHP Billiton, the world's biggest miner, surged up 3.1%, while Anglo American, the second biggest, rose 3% and Rio Tinto, the third biggest, climbed 4%. Copper miner Antofagasta gained 3.6%.
Similarly, heavily weighted oil stocks rallied after crude oil prices advanced. BP, Europe's biggest oil company, climbed 2.8%, while Royal/Dutch Shell, the second biggest, surged up 2.7% and Total, the third biggest, rose 2.1%.
Barclays, Britain's third largest bank, added 3.5% on reports that the company was considering the sale of its private equity business and will meet investment partners this week to discuss the issue.
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