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European shares rise as luxury stocks, autos gain on results

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[LONDON] European shares rose in early trading on Wednesday, led higher by auto stocks, with several companies such as luxury group LVMH and France's Peugeot advancing after their results.

The pan-European STOXX 600 index rose 0.6 per cent, while the FTSEurofirst 300 was up 0.4 per cent.

France's LVMH was up 5.8 per cent after its fashion and leather Q2 sales beat forecasts, helped by solid demand in the United States and improved trading in Asia, excluding Japan. It was on track for its biggest one-day gain since Feb 2015.

Luxury peers Christian Dior and Kering also gained 4 per cent and 2.9 per cent respectively.

Auto stocks were the top sectoral gainers, up 2.4 per cent, following a well-received update from France's Peugeot, which jumped 7.5 per cent.

Volkswagen gained 2.9 per cent after a US$14.7 billion settlement of its US diesel emissions cheating scandal cleared another legal hurdle as a federal judge gave the automaker preliminary approval to buy back up to 475,000 vehicles.

Chemicals company BASF, however, fell 3 per cent after reporting a drop in Q2 profit.