Europe close: Dax enters 'bull' market led by Munich Re, car-makers

European stocks added to their recent gains as investors sifted through the latest batch of earnings reports, although traders noted the reduced trading volumes in their comments sent to clients.

The benchmark Stoxx Europe 600 index was up 0.92% or 3.14 points by the close at 344.67, while Germany’s DAX powered ahead 2.50% to finish at 10,692.90 and France’s CAC 40 was 1.19% firmer.

Frankfurt´s Dax was a notable gainer, closing at its best level of 2016 and in so-called 'bull market' territory after rising by 22% from its February lows. Carmakers paced gains on the heels of strong Chinese car sales figures, alongside a sharp rise in Munich Re stock on the back of its latest quarterly financials.

The Stoxx 600 Autos & Parts gauge advanced 2.16% to close at 493.16.

At the same time, oil prices drifted lower, with West Texas Intermediate down 0.444% at $42.78 a barrel and Brent crude off by 0.76% to $45.05.

Jasper Lawler, an analyst at CMC Markets, said: "markets are drifting listlessly higher amidst lower summer volumes towards the end of earnings season and no major market-moving data."

On the corporate front, telecoms company Altice surged after posting a jump in second-quarter core earnings, while Standard Life gained ground after saying operating profit before tax rose 18% in the first half thanks to diversification, as its assets under management grew.

Reinsurer Munich Re jumped 6% after its second-quarter profit exceeded analysts’ expectations.

Morrisons pushed higher after the supermarket agreed a new deal with Ocado, ending their profit-sharing agreement but with the grocer taking roughly 30% capacity of the online specialist's new Customer Fulfilment Centre ("CFC") in Erith and increasing its Morrisons.com non-food range.

Payments processor Worldpay rallied after it reported a rise in underlying earnings and pre-tax profit amid strength in all its businesses and declared a maiden interim dividend of 0.65p per share, while Spirax-Sarco advanced after posting a jump in interim pre-tax profit.

On the downside, Pandora slid after the jewellery maker’s second-quarter sales missed analysts’ expectations.

Legal & General was under pressure despite posting an increase in first-half headline adjusted operating profit.

Pharmaceutical giant AstraZeneca nudged lower after it said a phase III trial of inhibitor selumetinib in combination with docetaxal chemotherapy to treat lung cancer failed to meet its main endpoint.