UPDATE 2-European shares rise with tech stocks in the lead

* Tech stocks at highest in two decades
* Commerzbank tumbles as quarterly loss deepens
* Credit Agricole soars on better-than-expected Q4
* Banks lead European sectoral declines

(Updates to close)
By Shreyashi Sanyal and Susan Mathew
Feb 11 (Reuters) - European shares rose on Thursday, as
investors kept close watch on a barrage of earnings reports from
companies and on progress in stimulus measures in the United
States for clues on the pace of business recovery.
The pan-European STOXX 600 index .STOXX closed up 0.5%, on
track for a near 4% gain in February.
The STOXX 600 is about 5% away from its peak of February
2020 after a rally of about 50% since it crashed in March, aided
by historic monetary and fiscal stimulus.
Investors kept a close watch on signs of progress around the
proposed $1.9 trillion U.S. stimulus bill, with data showing a
stalling recovery in the U.S. labour market strengthening the
case for it. Technology stocks, the biggest beneficiaries of the
coronavirus pandemic, were the top boosts on Thursday as a surge
in U.S. peers kept the tech-heavy Nasdaq .IXIC near all-time
highs. Europe's tech sector .SX8P rose 2.2% to hit their
highest since 2001. .N
The banks sector .SX7P dropped 0.5% as Germany's
Commerzbank CBKG.DE tumbled 6% after the lender said its loss
deepened in the fourth quarter. Meanwhile, France's second-biggest listed bank Credit
Agricole CAGR.PA jumped almost 5% after posting
better-than-expected fourth-quarter results. Analysts expect growth in corporate earnings this year,
driven by stimulus-induced liquidity, but are wary of next year
as the measures may start to fade.
"With the additional risks of corporate taxation, not only
in the U.S. but also in Europe like in the UK – there is a
debate about raising corporate tax. So, for next year, I think
the rise in earnings will be much more moderate," Luca Paolini,
chief strategist at Pictet Asset Management, told the Reuters
Global Markets Forum.
A 13% plunge in Unibail-Rodamco-Westfield URW.AS saw it
languish at the bottom of the STOXX 600, after the shopping
centres owner said it planned to cut U.S. exposure to close to
zero. More grim new came from Saab SAABb.ST after the Swedish
defence company missed fourth-quarter profit forecasts on weak
demand in civil aviation. London shares .FTSE closed flat as energy shares weighed
and concerns grew about the UK variant of the coronavirus, which
scientists said could undermine the protection given by vaccines
against developing COVID-19. "While AstraZeneca (NASDAQ:AZN) AZN.L have stated that they will have a
booster that addresses these new variants by Autumn, there is a
risk that these strains will stifle efforts to reopen the
economy in the coming months," said Joshua Mahony, senior market
analyst at online trading firm IG.