European shares rise on upbeat earnings
BNP Paribas rose 2.7 percent after reporting a forecast-beating rise in net profit but Credit Suisse lost 3 percent after second-quarter net profit was only in line with analysts' forecasts.
Markets were still slightly nervous ahead of an expected rise in borrowing costs by the European Central Bank on Thursday and as oil rose above $75 a barrel on the Middle East conflict, an expected U.S. supply fall and with a storm set for the Gulf of Mexico.
"Global investors remain cautious though ahead of an expected interest rate increase from the ECB on Thursday and concerns that the Bank of England may also follow suit with a surprise rate hike," said Gavin White, trader at GreenCFD.
By 0720 GMT, the FTSEurofirst 300 index of leading European shares was 0.4 percent higher at 1,331.73 points.
The benchmark fell 0.9 percent in the previous session as U.S. data revived fears the Federal Reserve will continue raising interest rates next week. However, the dollar slipped on expectations of a Fed pause with traders surprised by the fall.
Among other earnings-driven gainers, shares in Novo Nordisk shot up 6 percent after the company posted a larger-than-expected 17-percent rise in first-half operating profit and raised its full-year outlook.
Danone rose after raising its earnings growth forecasts for the year and fellow food group Cadbury Schweppes gained 3 percent on a pleasing update.
Lafarge shares also added 2 percent as the world's biggest listed cement supplier reported a 53-percent rise in first-half net profit as higher prices helped to offset increasing energy costs.
Away from company reports, Philips rose 2.2 percent after the Wall Street Journal reported that private equity firms Kohlberg Kravis Roberts & Co. and Silver Lake Partners appear to have won an auction for its semiconductor division.
Eurozone PPI data for June is due at 0900 GMT.