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Europe: Shares higher as UniCredit shines
[LONDON] European shares bounced back on Tuesday as investors cheered UniCredit results but gave Germany's Commerzbank a damp reception, while an outlook cut from Pandora dented the stock.
Europe's gains came on the heels of a stronger trading session in Asia as investors' focus shifts from a murky, complex trade war to company earnings which they can more easily pin down and price in to markets.
UniCredit shares rose 2.2 per cent to the top of the FTSE MIB after Italy's biggest lender by assets reported second-quarter profits fell less than expected.
The Italian index rose 0.6 per cent, out-doing the pan-European STOXX 600 which gained 0.3 per cent.
Commerzbank shares fell 3.5 per cent to the bottom of Germany's DAX, however, as investors reacted badly to a weaker-than-expected capital buffer, and its forecast for lower revenues from corporate clients in 2018.
Danish jewellery maker Pandora sank 18 per cent to the bottom of the STOXX 600 after cutting its sales and profit margin guidance for this year, announcing both measures fell in the second quarter.
Industrial machinery and equipment maker Oerlikon jumped 9.7 per cent after reporting.
Schaeffler shares climbed 5.9 per cent after the car parts maker raised sales guidance for its industrial division.
It helped boost the autos sector up 1 per cent, among top gainers. Germany's DAX also jumped 0.6 per cent thanks to its carmakers.
Meanwhile shares in Europe's biggest pure online fashion retailer, Zalando, fell 6.9 per cent after it trimmed its sales and profit outlook for the year, following results that missed expectations.