European stocks rose to a two-week high on Wednesday, as forecast-beating earnings from Intel, Johnson & Johnson and Goldman Sachs reassured investors on the outlook for corporate profits.
At 0800 GMT, the FTSEurofirst 300 index of top European shares was up 1 percent at 848.36 points, gaining ground for the third consecutive day.
Tech stocks were among the biggest gainers, with the DJ STOXX European technology index up 2.6 percent. Nokia climbed 4.1 percent, Infineon advanced 4.1 percent and STMicroelectronics put on 4.5 percent.
Alcatel-Lucent, upgraded to "buy" by Banc of America Merrill Lynch, surged 7.2 percent.
"Upward pressure on the share price will come from those investors who buy into the new management at Alcatel-Lucent, and from the fact that margins will likely move from negative to positive over the course of this year helped by seasonality and initial impact of cost-cutting," Banc of America Merrill Lynch analysts wrote in a note.
After the bell on Wall Street on Tuesday, Intel Corp's quarterly results and outlook trumped analyst forecasts on better-than-expected consumer demand for PCs, especially in Asia.
Johnson & Johnson and Goldman Sachs also pleased investors on Tuesday with better-than-expected results.
However, Goldman's strong results are not necessarily a preview of what to expect from all the banks, said Marie-Pierre Peillon, head of equity and credit research at Groupama Asset Management, in Paris.
"We're in the process of making the distinction between the winners and the losers. Goldman is one of the winners, but other banks are still struggling," she said.
BRACING FOR MORE EARNINGS
Banking stocks were in positive territory, with Deutsche Bank, HSBC, BBVA and Societe Generale up 1.2-2.7 percent.
Around Europe, UK's FTSE 100 index was up 0.9 percent, Germany's DAX index up 1.4 percent, and France's CAC 40 up 1 percent.
Mining and steel stocks also gained ground, bolstered by rising metal prices. Xstrata gained 3.3 percent, Rio Tinto added 2.7 percent and ArcelorMittal climbed 2.8 percent.
So far this year, the DJ STOXX basic resources index is up 38 percent, the banking index is up 22 percent and the tech index is up 14 percent.
Optimism about a burgeoning economic recovery sparked a sharp stock rally during the spring, propelling the FTSEurofirst 300 up 38 percent, but mixed macro data and rekindled doubts over the outlook for corporate results halted the rally last month, with the FTSEurofirst 300 down 4.7 percent since June 10.
Investors were bracing from more earnings from global companies due later this week, with Google, IBM, JPMorgan reporting on Thursday, and Bank of America, Citigroup and General Electric reporting on Friday.
