European shares moved higher in early trade on Tuesday, with Vodafone leading the gainers after it reported better-than-expected revenues, while BP fell after disappointing numbers.
By 0929 GMT, the pan-European FTSEurofirst 300 index of top shares was 0.3 percent higher at 779.95 points.
"It's a bear market rally but I think any recovery is going to be fragile. Any top-down (economic) number which we have seen effectively points to a worsening of the economic situation as opposed to a bottoming out or improvement," said Heino Ruland, strategist at FranfurtFinanza.
"These short-term rallies are bear market rallies and are not being carried through to any important technical resistance level which could inspire a more secondary rally," added Ruland.
The mobile telecommunications sector was the biggest weighted gainer on the index. Vodafone rose 4.6 percent after the group beat third-quarter forecasts for revenue and increased its guidance to reflect foreign exchange movements. Energy stocks were the main drag on the index. BP lost 2.3 percent after it said replacement cost net profit fell in the fourth quarter to $2.59 billion and undershot forecasts as oil prices collapsed and its Russian unit reported a big loss.
"BP figures will weigh with numbers not so good which is not surprising given the fall in the oil price and the impact of the Russian cost," said Justin Urquhart Stewart, director at Seven Investment Management.
BG Group, Royal Dutch Shell and Total were down between 0.8 and 3.3 percent.
Across Europe, the FTSE 100 index was up 0.1 percent, Germany's DAX was 0.4 percent higher and France's CAC 40 was up 0.3 percent.
DRUGMAKERS, BANKS RISE
Drugmakers were on the rise. Merck gained 0.8 percent as it said its experimental Parkinson's disease treatment safinamide, when taken with standard drug levodopa, was shown to improve patients' motor functions in a late-stage study.
Banks were mixed, although stocks did contribute to large gains on the index.
Banco Santander, UBS and Credit Agricole were up 1.5 to 2.4 percent.
"People are still a little bit shaky about the banking industry, but today it does not appear to be a problem. It's bargain hunting," added Ruland.
BNP Paribas was down 2.8 percent.
Law firm White & Case representing Chinese insurer Ping An which holds a 5 percent stake in Belgian-Dutch financial group Fortis, said it may vote against Fortis's revised deal with the Belgian government and the bank.
Nordea Bank, HSBC and Barclays were 0.2 to 2.4 percent lower.
Later in the session, investors will await U.S. pending home sales for December, due at 1500 GMT. Economists in a Reuters survey expect an unchanged reading compared with a 4 percent drop in the previous month.
