Europe: Shares flat as earnings optimism overtakes trade war fears

[LONDON] European shares were flat on Wednesday as a fresh batch of corporate earnings offset mixed signals on the US-China trade conflict.

At 0711 GMT, the pan-European STOXX 600 was flat, Germany's DAX had gained 0.1 per cent and France's CAC 40 was up 0.3 per cent.

European financials were one the few sectors in the black after France's BNP Paribas reported forecast-beating second-quarter profits and saw its shares rise 0.6 per cent .

Lloyds Banking rose 2 per cent after reporting pre-tax profit for the first half of 2018 jumped by 23 per cent.

The travel and leisure index was also in positive territory as shares in Air France-KLM rose 7 per cent after second-quarter results beat estimates.

Basic materials was the worst-performing sector, down 1.6 per cent. Copper prices slid on reports the United States may propose a higher 25 per cent tariff on $200 billion of Chinese imports.

REUTERS