European shares rose on Thursday, with gains by banks on better-than-expected results from JPMorgan Chase & Co more than offsetting declines in tech shares as bellwether Nokia warned on margins.
At 1111 GMT, the FTSEurofirst 300 index of top European shares was up 0.5 percent at 868.00 points, rising for the fourth straight day after moving in and out of positive territory during the morning session.
The DJ Stoxx European Banking Index was up 1.2 percent after JPMorgan Chase & Co posted a higher quarterly profit on Thursday, beating Wall Street estimates, due to strength in its core consumer and investment banking business.
"That was really very, very good news and confirms the development of the banking sector in the United States. It was a truly positive surprise which does away with the question whether we actually have reached the end of the crisis," said Joerg Rahn, chief investment officer at wealth management company Marcard, Stein & Co.
Banks added the most points to the FTSEurofirst 300, with BNP Paribas, Lloyds and Banco Santander all up between 1.4 percent and 3.1 percent.
A 33 percent surge in quarterly earnings earlier this week at Goldman Sachs had also sparked optimism that the banking sector was recovering.
Across Europe, Britain's FTSE 100 was up 0.3 percent, Germany's DAX gained 0.9 percent and France's CAC-40 was 1.2 percent higher.
NOVARTIS UP, NOKIA DOWN
The DJ STOXX European Healthcare Index was the top sectoral leader, up 1.7 percent, boosted by Swiss drugmaker Novartis, which rose 3.9 percent after it raised its full-year forecast for drug sales and second-quarter net profit met expectations.
"So far, we're getting indications of a better-than-expected Q2 earnings season, though it's very early," said Bernard McAlinden, investment strategist at NCB Stockbrokers, in Dublin. "We're in a range, and we have been going up to the upper end of it. But the market needs to see that recovery is there, and that earnings have bottomed."
But shares in Nokia sank 9.1 percent after the world's top cellphone maker cut its forecast for second half margins and 2009 market share at its key phone unit.
The DJ Technology Index was the top sectoral decliner, down 2.7 percent.
Miners also dropped, weighed down by lower copper prices, with Anglo American and BHP Billiton down 2.4 and 0.4 percent respectively. Oil producers, too, were slightly lower as crude prices slipped 0.9 percent. Total and BP fell 0.1 and 0.6 percent.
Later in the session, investor focus will be on U.S. jobless claims, due at 1230 GMT.
