Europe open: Stocks edge higher as investors sift through earnings

European stocks edged higher in early trade following losses in the previous session as investors sifted through corporate releases.

At 0900 GMT, the benchmark Stoxx Europe 600 index was up 0.3%, while France’s CAC 40 and Germany’s DAX were both 0.4% higher.

Portugal’s PSI 20 bucked the trend, trading down 1.2% amid ongoing political uncertainty.

“Initial positive sentiment was quickly steam rolled over yesterday morning as fears of US monetary tightening quickly overwhelmed the bulls,” said Jonathan Sudaria, a night dealer at London Capital Group.

“However, the argument that a weaker pound and euro should lend some support to hose respective economies, and the fact that a US rate hike should be an indicator of strength for the US economy, still exists and we’re set to see traders trying to claw back some of yesterday’s losses on the open.”

In corporate news, Vodafone was the standout gainer on the FTSE 100 after its first half results beat expectations and the company lifted full year guidance.

ITV rose after saying it was on track for double digit growth in full year profit as it posted a strong third quarter book.

National Grid gained ground after it announced strong first half earnings growth and confirmed rumours that it has begun to look at potentially selling a majority stake in its gas distribution business and returning the proceeds to shareholders via a likely special dividend.

On the downside, plumbing supplier Wolseley fell after its first-quarter update failed to impress, while property developer Land Securities was also in the red as its interim net asset value per share fell short of expectations.

Supermarket retailers Morrison and Tesco were under the cosh after Deutsche Bank downgraded its ratings on the stocks.

Vallourec slid after the French steel pipe maker posted a third-quarter loss amid falling demand from its oil and gas customers and said it does not not expect market conditions to improve any time soon.

There are no major Eurozone data releases due but in the US, the import price index is at 1330 GMT, while wholesale inventories are at 1500 GMT.