Europe close: Stocks edge higher amid mixed earnings and lack of data

European equity markets edged higher on Tuesday as investors sifted through a batch of mixed corporate results.

The benchmark Stoxx Europe 600 closed up 0.42%, while France’s CAC 40 rose 0.41% and Germany’s DAX was flat.

As of 1632 GMT, the euro was on the back foot against the main currencies, declining 0.55% and 0.43% against the dollar and the pound respectively and losing 0.25% against the yen, while Brent crude was rose 2.30% to $49.94 a barrel.

“The Eurozone was somewhat limper, largely due to the latest decline from Volkswagen pushing the DAX into negative territory,” said Spreadex’s financial analyst Connor Campbell.

“The region will be looking for an extra boost tomorrow morning as Draghi gives the opening remarks at the ECB Forum on Banking Supervision.

“Whilst not guaranteed, the ECB president does have a knack for providing just enough enigmatic goodwill to see the markets bounce after his comments.”

In company news, Switzerland’s UBS declined 4.55% despite posting better-than-expected third-quarter profit, as the bank cut its financial targets on the back of new capital rules and a difficult macroeconomic backdrop.

Shares in beleaguered German car maker Volkswagen reversed early losses to gain 1.30%, after US environment regulators said late on Monday that the company had used devices to cheat air pollution tests in luxury diesel vehicles.

Royal Dutch Shell rose 3.52% after saying it will accelerate the implementation of measures to deal with a prolonged downturn in oil prices once the acquisition of BG Group is complete.

BMW shed 0.73% despite announcing a surprise increase in operating profit for the third quarter thanks to strong sales in core European markets.

The economic was extremely quiet in the Eurozone, while across the Atlantic factory orders declined 1% in September compared with analysts’ expectations for a 0.9% drop.

Meanwhile, August’s figures were downwardly revised to show a 2.1% increase compared with the 1.7% rise that was initially reported.

“Given the relatively small revisions to durable goods data, this morning’s report provides little new signal on the state of US manufacturing,” said analysts at Barclays.

“Demand for many categories of manufactured goods continues to struggle from the effect of a stronger dollar, weak foreign demand and lower energy prices.”