LONDON: European shares turned higher on Friday as investors chewed over mixed earnings updates, getting support from well-received updates from Vodafone and Thales British telecom firm Vodafone rose 3.7 percent, adding the most points to an advance on the pan-European FTSEurofirst 300, after results that showed improvements across major markets in Germany and Britain.
French defence group Thales was up 8 percent, hitting an all-time high after its results.
First-half operating profit rose by a wider-than-expected 18 percent to 473 million euros ($519 million), buoyed in part by a tighter grip on costs in its defence and security business.
The FTSEurofirst 300 was up 0.4 percent at 1,585.05 at 0843 GMT having hit a one-week low, turning positive after weak private sector growth data, which sent bond yields lower and kept the pressure on the European Central Bank to stimulate the euro zone economy.
"Historically the ECB has said it would do whatever it takes to save the euro, it has launched quantitative easing to support the euro zone and investors have faith that they will continue to be supportive if there are signs of weakness," said Alastair McCaig, market analyst at IG.
The biggest faller on the pan-European FTSEurofirst 300 was satellite operator SES, down 7.1 percent after it cut its full-year revenue and profit guidance, hit by a delayed satellite launch and a decline in earnings from fixed data customers due to the strong dollar.
"The guidance was again lowered due to satellite launch delays, strong USD and satellite health degradation," analysts at ING said in a note, saying that analysts had been overly optimistic on full year earnings.
"Earnings growth is slowing down materially (year-on-year) in 2015; and consensus still looks c.3.5 percent too high on (2015 and 2016 earnings)" German firm BASF, the world's largest chemicals company by sales, fell 4.1 percent after earnings missed expectations. Spain's IBEX underperformed the market, trading flat.
Abengoa was the top faller, slumping 13 percent shortly after the open, despite saying it would act to prevent speculative trading on its debt after a day of losses for its bonds, credit default swaps and stock on Thursday.
Banco Sabadell fell 3.5 percent after reporting that profitability at dropped in the second quarter, while insurer Mapfre fell 3.7 percent after also seeing profits fall.
British emergency energy supplier Aggreko fell 14 percent after issuing a profit warning.
With 18 percent of STOXX Europe 600 companies having reported results, only 33 percent have beaten or met expectations, according to Thomson Reuters Starmine data, with 67 percent missing expectations.
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