European shares higher on corporate earnings

The STOXX 600 index closed 0.2% higher and most other major regional indexes were also in positive territory

European shares closed slightly higher on Tuesday, following a 1% jump in the previous session, as investors assessed mixed corporate earnings, while French stocks closed at a record high.

The continent-wide STOXX 600 index closed 0.2% higher and most other major regional indexes were also in positive territory. Spain’s was down 0.4%.

At the top of the STOXX 600, vouchers and benefit cards provider Edenred jumped 19.6% after it reported third-quarter sales that were above expectations.

Other French stocks including luxury groups LVMH and Hermes helped to boost the broader European index by 0.7%. Industrial stocks added 0.7%, with Airbus up 1.8% and Safran up 1.7%.

French stocks have been on the rise since last week when Prime Minister Sebastien Lecornu survived two no-confidence votes.

European real estate stocks gained 1.3%. Segro added 2.9% after the warehousing group reported strong third-quarter rent signings.

As per LSEG I/B/E/S data, 22 companies on the STOXX 600 have reported earnings so far for the third quarter, with 50% of them beating analysts’ estimates.

Mining stocks were at the bottom of the STOXX 600, tracking a retreat in prices of gold, silver and copper.

The STOXX 600 index added about 1% in the previous session as concerns surrounding the U.S. banking sector and U.S.-China trade tensions calmed.

Markets have once again shrugged off a potential risk-off event. Friday’s concern over private credit exposure among the U.S. banks seems to be behind us, said Mohit Kumar, economist at Jefferies.

He added: Our view remains that the macro picture is supportive of risky assets and any dips will be bought.