By Sruthi Shankar and Amruta Khandekar

Jan 23 (Reuters) – European stocks rose on Monday as technology companies led the gains as optimism about the euro zone economy avoiding a deep recession overshadowed hawkish remarks. of the authorities of the European Central Bank (ECB).

* The pan-European STOXX 600 index gained 0.6%. In the previous session, the index had posted its first weekly decline of the year, on jitters over the earnings season and upcoming interest rate decisions by major central banks, including the ECB.

* The technology sector rose 2.3%, in line with its US peer, boosted by shares in semiconductor companies such as ASML Holding and Infineon Technologies.

* The STOXX 600 hit a nine-month high last week as Europe’s mild winter and China’s abandonment of its strict COVID-19 rules lifted the outlook for the European economy.

* China-exposed luxury companies such as LVMH and Kering rose between 0.8% and 1.7%, while rate-sensitive euro zone banks added 0.8%.

* Despite signs of slowing inflation in the eurozone, ECB policymakers have maintained a hawkish stance. Klaas Knot and Peter Kazimir, members of the bank’s Governing Council, supported the idea of ​​two more rate hikes of 50 basis points.

* Investors will look for more clues about the central bank’s tightening plans when ECB President Christine Lagarde speaks later in the day.

* With earnings season underway, investors are waiting to see if the results will continue to support the recent rally in the markets. Fourth-quarter earnings for STOXX 600 companies are forecast to have grown 10.7% year-on-year, the slowest rate in two years, according to data from Refinitiv I/B/E/S.

(Edited in Spanish by Ricardo Figueroa)

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