European shares edge higher on positive earnings

The pan-European STOXX 600 was up 0.4% at 608.13 points, after posting its biggest decline in a month on Monday

European shares edged higher on Tuesday, recouping slightly from a slump in the previous session, as investors ‌assessed upbeat corporate earnings, though an escalation in Iran-U.S. tensions kept sentiment in check.

The pan-European STOXX 600 was up 0.4% at 608.13 points, as of 0818 GMT, after posting its biggest decline in a month on Monday. Major bourses were ​also trading higher, except London’s FTSE 100, which was down 0.9%.

A fragile truce between Iran and the ​U.S. was in question after the two nations launched new attacks ⁠as they wrestled for control of the Strait of Hormuz. Oil prices remained firmly ​above $110 a barrel.

Soaring oil prices have weighed on energy-dependent Europe, stoking inflation fears that have ​led to expectations of two to three rate hikes by the European Central Bank this year and dragged shares below pre-war levels.

Corporate earnings have been relatively supportive. And at the end of the day, ​if companies are still making money, then that’s going to keep the mood buoyant, said ​Fiona Cincotta, senior market analyst at City Index.

Even if there are concerns over rising oil prices, they ‌don’t ⁠seem to be hitting equity markets as much as one might expect them to, she said.

The food and beverage sub-index added 1%.

Anheuser-Busch InBev rose 7% after the Belgian beer maker posted quarterly sales and profits well above forecast.

Shares of Hugo Boss increased 4.5% after the German fashion ​group reported quarterly operating profit ​above expectations.

The technology ⁠sub-index advanced 1.3%, while the automobile sub-index was up almost 1%.

Financials remained a drag as they declined 0.6% on reporting an unexpected $400-million loss linked to ​a fraud case in Britain that resulted in first-quarter profit below ​estimates.