Europe: Shares rise, shrugging off disappointing earning updates

[MILAN] European shares rose on Tuesday buoyed by exuberant markets in New York and Asia with early sluggishness in the euro boosting the export-oriented DAX index to a new record high.

A rebound in banks and gains among commodity stocks underpinned the broader market, sending the pan-European STOXX 600 index up 0.2 per cent by 0819 GMT and helping offset a number of disappointing earning updates including from BMW.

The German carmaker fell 2 per cent after its third-quarter earnings fell 5.9 per cent, near the low-end forecast in a Reuters poll, due to upfront costs for new technologies and models. The world's second-largest luxury automaker however slightly lifted its outlook for pretax profit this year.

Its fall was more than offset by broad-based gains that sent the DAX, the German country benchmark index, up 0.3 per cent.

On the STOXX 600, the biggest fallers were shares in chipmaker Dialog Semiconductor , down 6.1 per cent following a cautious outlook for the fourth quarter.

Also under pressure following their updates were shares in Danish shipping group AP Moller Maersk, Siemens Gamesa and London-listed security group G4S.

The FTSE was up 0.1 percent.

REUTERS