Europe close: Shares edge higher amid summer lull

European stocks edged higher on Thursday as oil prices recovered and investors continued to sift through earnings.

The benchmark Stoxx Europe 600 index was up 0.78% or 2.68 points to 346.66, Germany’s DAX advanced 0.86% to 10,742.84 and France’s CAC 40 was 1.17% firmer.

Meanwhile, oil prices came off their lows, having fallen sharply after data from the US Energy Information Administration on Wednesday showed a build in crude inventories and following record Saudi Arabian production.

West Texas Intermediate crude oil futures jumped 4.09% to $45.93 a barrel and Brent crude rose 3.96% to end the day at $43.43.

Oanda’s Craig Erlam said: “At a time of relatively little news flow, traders are again focused on the movements in oil and whether we’re going to see another move back to the levels seen earlier this year.

In corporate news, Zurich Insurance and Belgium’s KBC racked up strong gains after they posted better-than-expected second-quarter results.

Henkel pushed up after the German consumer products company said second-quarter profit increased 8%.

Thyssenkrupp was on the back foot after it reported a 34% drop in third-quarter profit, while German utility RWE also lost ground after it said earnings in the first half of the year tumbled.

Tui Group advanced after it said revenues shrank in the third quarter but the travel group was still confident of hitting its full year targets.

Soft drink bottler Coca-Cola HBC rallied after saying first-half net sales revenue grew 2.4%.

Legal & General edged down after agreeing the sale of its Cofunds investment platform to Aegon for £140m.

Miner and commodity trader Glencore edged higher even after it reported a drop in production in the first half - with the exception of nickel and agricultural products - and lifted its full-year copper guidance.

Old Mutual was under pressure as its first-half results fell short of expectations.

Poundland finished flat but at its best levels of the day as Steinhoff International improved the terms of its offer for the discount retailer, offering 227p in cash per share, made up of 225p and a 2p dividend.