European shares up on Fed boost; autos, energy cap gains

  • Reuters
  • Stock Market News
European shares up on Fed boost; autos, energy cap gains

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Oct 31 (Reuters) - European shares rose on Thursday after the U.S. 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 .STOXX rose 0.3% at 0820GMT led by gains in Milan's FTSE MIB .FTMIB but London's FTSE 100 .FTSE lagged.

The U.S. 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 9% rise in shares of Dutch semiconductor supplier ASM International ASMI.AS after it forecast a rise in quarterly sales for the fourth quarter. 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 10% and Peugeot owner PSA PEUP.PA dropped 9% after the two companies reached a deal to create the world's fourth-largest automaker. PSA had risen nearly 5% in the last three sessions in anticipation of the deal.

The oil and gas sector .SXEP led losses, dragged lower by shares of energy heavyweight Royal Dutch Shell RDSa.L , down 3%, after the company warned that slowing economic conditions could hit its $25 billion share buyback program.

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