Europe open: Shares surge as chipmakers get boost from Samsung results

European shares surged at the open on Thursday, with chipmakers gaining after positive earnings by South Korean electronics giant Samsung.

The pan-regional Stoxx 600 index was up 1.14% in early deals with major bourses all higher. Investors were eyeing minutes from the European Central Bank for clues on rate hikes.

Britain’s FTSE 100 was up almost 1% despite political turmoil gripping the country. Prime Minister Boris Johnson is refusing to quit office despite more than 50 ministers resigning amid claims he misled them over his knowledge of sexual harassment allegations against an MP he promoted as an aide.

In equity news, semiconductor firms STMicroelectronics, BE Semiconductors, ASM International, ASML Holding all made gains after Samsung posted its best April-June profit since 2018, driven by strong memory chip sales to server customers.

Shares in Tenaris jumped 7% after Jefferies raised its price target on the stock.

UK housebuilders were in the red after Persimmon warned on higher building costs due to increases in wages and raw materials prices. However, it still expected annual profits to be “slightly” ahead of last year. Rivals Barratt and Berkeley were also lower on the news.

Gambling group Entain fell as it said online revenues would be flat.

Reporting by Frank Prenesti at Sharecast.com