UPDATE 2-Earnings lift European shares, banks shine

  • Reuters
  • Stock Market News
UPDATE 2-Earnings lift European shares, banks shine
Credit: © Reuters.

* STOXX 600 up 0.7 pct, DAX up 0.5 pct

* Heineken

* Tech sector rises after Apple (NASDAQ: AAPL ) hits $1 trln

* Financials drive gains after Credit Ag, RBS (LON: RBS ) results (Adds closing prices)

By Helen Reid and Julien Ponthus

LONDON, Aug 3 (Reuters) - Earnings, particularly in the banking sector, lifted European shares on Friday at the end of a volatile week, as investors drew encouragement from Apple becoming the world's first trillion-dollar company.

The pan-European STOXX 600 .STOXX index closed up 0.7 percent but ended the week on a 0.5 percent loss.

Financials climbed as shares in RBS rose 3 percent after the recovering state-owned bank announced its first dividend in a decade. Credit Agricole CAGR.PA posted the best performance of Paris's CAC 40 index .FCHI with a 2.3 percent rise with second-quarter profits ahead of estimates.

Peer Natixis CNAT.PA also gained 1.4 percent as profits rose between April and June. the banking sector's profitability is up 22 percent year-on-year and credit quality is improving, Goldman Sachs (NYSE: GS ) analysts said, calling the quarter a healthy one for banks.

Also reporting on Friday, German insurer Allianz ALVG.DE rose 1 percent after it reaffirmed it is on track to meet its 2018 profit target. group's key business continues to demonstrate robust operating performance and solvency remains comfortably above the upper end of the group's target range," said Goldman Sachs analysts.

Overall, European corporates have delivered 7.8 percent year-on-year earnings growth for the second quarter so far, up on first quarter gains, according to Thomson Reuters data.

Apple was a driver for the broader tech sector .SX8P in Europe, which climbed 0.6 percent with chipmakers - some of which supply the iPhone maker - the top gainers.

Siltronic WAFGn.DE , Ams AMS.S and BE Semiconductor BESI.AS rose 2.2 to 4.8 percent.

Autos .SXAP rose 0.8 percent in a relief bounce after two days of selling following a threat by U.S. President Donald Trump to hike tariffs on Chinese imports.

Airport retailer Dufry DUFN.S fell 5.9 percent to a four-month low after reporting lower-than-expected sales growth. HEIN.AS shares added 2.3 percent after the firm sealed a $3.1 billion tie-up with the owner of China's largest brewer, China Resources Beer, under which Heineken will take a 40 percent stake in the Chinese company. European tech earnings strongest since 2000



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