MILAN: European shares closed modestly higher on Tuesday, as investors assessed a batch of mixed earnings reports while holding out for more US stimulus to limit the economic damage of Covid-19.
The pan-European STOXX 600 rose 0.4%, with defensive sectors such as healthcare, food & beverage and utilities boosting the main index. Travel stocks rebounded from losses on Monday when worries of a resurgence in coronavirus cases in Europe hit risk sentiment.
Investors awaited the conclusion of a US Federal Reserve meeting on Wednesday, when policymakers are expected to reiterate their supportive stance as talks loom over another round of fiscal stimulus for the US economy.
Earnings season also kicked into high gear in Europe, with luxury giant LVMH sliding 4.1% as store closures sparked by the pandemic tore a hole into the Louis Vuitton owner's second-quarter sales.
Gucci owner Kering and France's Hermes slipped over 2%, while Moncler, which makes luxury puffer jackets, shed 4.4% after reporting a first-half operating loss for the first time in its history.
Peugeot maker PSA Group rose 2.4% as it held on to its margin target despite a fall in profitability in the first half of 2020. Online takeaway food company Delivery Hero SE jumped 2.4% after it raised its forecast for 2020 sales after nearly doubling quarterly revenues. British housebuilders jumped 2% after a report that the UK government is drawing up extension to its Help to Buy scheme, which makes it easier for first-time buyers to afford a home.
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