European shares rise on recovery hopes, technology shares gain

European shares rose on Tuesday as investors were hopeful of a faster economic recovery, while technology shares led the advance after French IT consulting group Atos ended talks of a potential takeover of U.S. rival DXC Technology.

Shares in Atos SE gained 5% after the firm said it has decided to discontinue talks about a potential $10 billion acquisition of DXC Technology Co. The European technology sector rose 1.4%, while the STOXX 600 index gained 0.8%.

An upbeat mood from Asian markets spilt over to Europe in early trading on hopes of more stimulus for the U.S. economy. Investor focus also remained on earnings reports from across Europe, with Fresenius Medical Care tumbling 12% after the world's No.1 kidney dialysis firm warned its adjusted net profit would likely drop this year.

BP plunged 4% after its profit in the last quarter of 2020 sunk to $115 million due to weak energy demand and poor trading results.