Promising profits push European shares higher

European shares gained on Tuesday after a series of better-than-expected earnings reports helped allay fears of rapid interest rate increases and a slowdown in the euro-zone economy.

The pan-European STOXX 600 index rose 0.5% by 0717 GMT, with the media and technology sectors compensating for losses in chemical shares.

SAP shares rose 3.9 percent after the German corporate software giant reported faster-than-expected revenue growth for the third quarter, while Logitech International rose 4.8 percent after the computer maker reaffirmed its full-year forecast.

UBS shares rose 3.5 percent after the Swiss bank’s quarterly profit exceeded market expectations, boosted by increased new financial inflows.

Among the companies that recorded losses, German Covestro Chemical, whose shares fell 1.9 percent after it cut its profit forecast for 2022 for the third time this year, blaming high gas and raw materials prices amid the deepening European energy crisis.