* Pan-European STOXX 600 index ends up 0.3 pct
* France's CAC falls 0.5 pct, led by BNP Paribas
* AMS, GEA surge after well-received results
* Q4 earning season delivered solid results so far - DB
* Oil stocks fall after BP misses estimates
(Adds details, closing prices)
By Danilo Masoni and Atul Prakash
MILAN/LONDON, Feb 7 European shares rose on
Tuesday, helped by some encouraging company results, but French
stocks slipped after earnings at BNP Paribas
disappointed and election jitters weighed on the country's
The pan-European STOXX 600 index rose 0.3 percent,
partly recovering from losses in the previous session, while the
French blue chip CAC index fell 0.5 percent, bringing
losses so far this year to more than 2 percent.
French banks, among the best performers among European
financials in 2016, fell after BNP reported results below
forecasts, while the country's bond yields spiked on concerns
that the far right could win France's presidential vote and take
it out of the European Union.
"The political uncertainty is a burden for financials in
France. Some election noise advocating for an exit from the
European Union is making investors jittery," Unicredit analyst
Christian Stocker said. "Financials did very well in the last
2-3 months and probably we are seeing some profit-taking now."
BNP Paribas' fourth-quarter net income rose to 1.44 billion
euros, more than doubling from a year ago, although the result
came in below the average estimate of 1.50 billion euros in a
poll of analysts. Its shares fell 4.8 percent, making them the
biggest losers on the CAC.
EVLI Bank Chief Investment Officer Kim Pessala said
relatively cheap valuations and good earnings growth made him
quite upbeat about prospects for European equities but
political uncertainty and risks of protectionist policies from
U.S. President Donald Trump suggested caution.
"We're leaning towards possibly increasing our exposure to
European equities as many things look good, but there are two
big uncertainties: Trump and the French elections," said
According to Deutsche Bank, the fourth-quarter season has
delivered solid results so far in Europe, with financials and
industrials providing the biggest contribution to an overall
earnings per share growth of 8.3 percent from a year earlier.
In Tuesday there were well received updates from chipmaker
AMS, which rose 22.4 percent, scoring its biggest
one-day gain ever, and food-processing machinery maker GEA
, which added 3.6 percent after setting a brighter
However updates from energy companies disappointed, with
stocks in the sector also penalised by a further decline in
crude oil prices.
Oil major BP fell 4.1 percent after the company
missed estimates. Peer Statoil also fell 3.1 percent
after a disappointing set of results.
Finnish oil refiner Neste fell 5.5 percent after
fourth-quarter operating profit came in slightly below consensus
forecasts, with some investors also citing disappointment over
the lack of clarity in its renewables outlook.
But Kim Gorschelnik, head of research at Finnish asset
manager FIM, said the results delivered no new negative
surprises, confirming his upbeat view on the stock.
"We consider Neste as a solid quality company for a long
term investor and one could consider today's share price
reaction as an entry point," he said.
($1 = 0.9377 euros)
(Reporting by Danilo Masoni; Editing by Mark Trevelyan)