European stocks lifted by upbeat earnings

European stock markets inched higher on Wednesday supported by upbeat earnings, as investors paused for breath after the previous day's strong gains amid ongoing concern about the fallout from Ukraine. Frankfurt's main DAX index gained 0.20 per cent compared with Tuesday’s close to end the day at 9,753.56 points. London's benchmark FTSE 100 index edged up 0.04 per cent to 6,798.15 points, while in Paris the CAC 40 added 0.16 per cent to 4,376.32. Markets also took heart from news that Spain's economy grew at its strongest rate for six years in the second quarter of the year.
- Europe earnings in focus -
In European corporate activity, Daimler shares closed down 0.77 per cent after the world's third-biggest maker of luxury vehicles reported upbeat second-quarter earnings boosted by strong Mercedes sales. French engineering group Alstom lost 0.18 per cent after it reported sales and order figures which fit its strategy, controversial in France, of selling energy assets to focus on being a world leader in rail equipment. Iberdrola shares gained 0.40 per cent in Madrid despite the utility reporting a 13 per cent drop in its first-half net profit to 1.5 billion euros due to cuts in renewable-energy subsidies. And British drug maker GlaxoSmithKline plunged 4.73 per cent after slashing its 2014 profits forecast as second-quarter earnings sank on the back of weak US trade, adverse currency moves and a Chinese bribery probe. The European single currency hit an eight-month low at against the dollar at $1.3455 due to concerns about the impact on the eurozone economy of possible fresh sanctions against Russia following the downing of flight MH17. It later recovered to $1.3463, compared with $1.3465 late in New York on Tuesday. Meanwhile, the pound drifted after the Bank of England said in minutes of its last meeting that policymakers had voted unanimously to keep its main interest rate at a record-low level of 0.50 per cent. The euro rose to 79.03 British pence from 78.90 on Tuesday. The pound dropped to $1.7035 from $1.7061. The price of gold slid to $1,308 an ounce on the London Bullion Market compared with $1,310.25 on Tuesday, according to AFP.