Europe open: Stocks edge higher as BP, Shell earnings in focus

European stocks edged a little higher in early trade following encouraging Chinese manufacturing data, as investors continued to sift through earnings releases.

At 0900 BST, the benchmark Stoxx Europe 600 index was up 0.2%, Germany’s DAX was up 0.3% and France’s CAC 40 was 0.1% higher.

Meanwhile, oil prices advanced. West Texas Intermediate was up 0.5% to $47.11 a barrel and Brent crude was 1.2% firmer at $49.18.

Earlier, both the Bank of Japan and the Reserve Bank of Australia stood pat on their monetary policies.

Data out of China helped to underpin the mood on Tuesday. The official manufacturing purchasing managers’ index increased to 51.2 in October from 50.4 the month before. A reading above 50 indicates expansion.

Meanwhile, the Caixin manufacturing PMI edged up to 51.2 in October from 50.1 in September. Both readings were better than expected.

On the corporate front, the energy sector was in focus as oil giants BP and Shell reported their earnings.

BP was under the cosh after it said underlying third-quarter profits halved compared to last year, although the fall was not as bad as feared.

However, Royal Dutch Shell fared a lot better, gaining more than 3% as its third-quarter profits beat analysts’ expectations.

Tyre maker Nokian rallied after posting a 2% rise in third-quarter operating profit while consumer goods group Orkla was also in the black after reporting better-than-expected core operating profit for the third quarter.

Moneysupermarket surged as it said it was on track to meet forecasts for a record year after a resurge in insurance offset a flat period for credit card and loan switching in the third quarter.

Virgin Money slipped despite reporting a rise in gross mortgage lending for the nine months to the end of September and expressing confidence that the Brexit vote would not affect its full-year performance.

Danish jewellery brand Pandora was weaker despite reiterating its full-year revenue guidance and reporting an increase in third-quarter profit.

There are no major eurozone data releases due, but in the US, construction spending and ISM manufacturing are at 1400 GMT.