European shares lifted by positive earnings reports

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) - European shares rose on Wednesday, as a batch of positive earnings reports and the huge quantities of stimulus coursing through the financial system again overshadowed concerns about the surge in coronavirus cases in Europe and the United States.

The pan-European STOXX 600 index (STOXX) rose 0.7% by 0711 GMT, with the oil & gas index (SXEP) leading gains after BP (L:BP) extended gains for a second day.

Ahold Delhaize NV (AS:AD), a major operator of supermarket chains in the United States and Europe, jumped 5% as it raised its sales outlook for 2020 after coronavirus lockdowns drove more traffic through its stores and online delivery services.

German residential real estate company Vonovia (DE:VNAn) rose 2.9% as it announced an 8% rise in first-half core profits and confirmed its guidance for the year.

However, BMW (DE:BMWG) slid 3% as lockdowns pushed the carmaker to a second-quarter operating loss as deliveries of luxury cars fell by 25% during the period.

Investors have largely looked past a slump in profits for European companies on the expectation that the trillions of dollars central banks are injecting globally into the financial system will prop up stock markets until recovery takes hold.

Companies listed on the STOXX 600 are expected to report a decline of 67.5% in second-quarter earnings, down from a drop of 58.3% forecast the week before, according to Refinitiv data.

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