UK election relief, tech rally pull European shares to over 1-week highs

(Reuters) – European stocks rose to more than one-week highs on Friday after the Labour Party’s return to power in the UK general election gave investors a sense of calm, while German chip systems manufacturer Aixtron rallied on reporting strong orders.

The pan-European index was up 0.4% by 0721 GMT, touching its highest level since June 26.

The UK’s blue-chip added 0.3% and the domestically oriented jumped 1% to one-month highs after the Labour Party surged to a landslide victory in a parliamentary election on Friday, ending 14 years of often tumultuous Conservative government.

European tech stocks topped sectoral performance on Friday with a 0.9% rise.

Aixtron rallied 15.5% to the top of STOXX 600 after the company reported a strong order intake in the second quarter.

Other chip firms including ASM International (AS:), BE Semiconductor and ASML Holding (AS:) climbed 0.6%-1.1%, spurred by Samsung (KS:)’s prediction of a 15-fold surge in second-quarter operating profit.

Varta jumped about 27% after the German battery maker said it is in talks with Porsche over a potential investment in its large-format lithium-ion battery business.