July 27 (Reuters) – European shares rose in early trade on Tuesday, adding to gains after closing at a five-week high a day earlier, with banks rallying after strong results from UBS (UBSN.VX).
By 0709 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.4 percent at 1,053.38 points, and touched its highest intraday level since June 22.
UBS rose 7.2 percent as the bank said strong equities and currency revenues drove second-quarter net profit well above forecasts. [ID:nLDE66P0CS]
Banking shares .SX7P featured among the biggest gainers, with Barclays (BARC.L), Societe Generale (SOGN.PA) and BNP Paribas (BNPP.PA) up 2.1 to 5.4 percent.
“Expectations are rising for earnings. Companies are guiding full-year forecasts up in spite of concerns about a loss of recovery momentum … and that is helping to keep these markets reasonably firm,” said Mike Lenhoff, chief strategist at Brewin Dolphin.
Among other companies reporting earnings, BP (BP.L) said it would take a charge as a result of the Gulf of Mexico oil spill amounting to $32.2 billion, driving it to a second quarter loss of $16.97 billion, and also announced that chief executive Tony Hayward will step down on Oct. 1 and will be replaced by fellow executive Robert Dudley. The stock added 0.5 percent. [ID:nWLA9308] (Reporting by Harpreet Bhal)