European shares inched higher on Wednesday, with banks boosted by results from Societe Generale while mining stocks weighed as investors looked ahead to key U.S. data later in the day.
At 0832 GMT, the FTSEurofirst 300 index of top European shares was 0.2 percent higher at 941.20 points. The index, which plunged 45 percent in 2008, is up 46 percent since falling to a lifetime low in early March.
"The market continues to be in a phase of cooling down a bit and the clear focus today will be on macroeconomic data in the United States later in the day," said Commerzbank's chief strategist, Hans-Juergen Delp.
"As we have seen yesterday, company earnings only seem to play a vital role when they massively exceed or miss expectations."
French Bank Societe Generale gained 5.4 percent after the lender's second-quarter profits beat expectations.. Banks added most points to the index and the DJ STOXX European Banks Index was 1.1 percent higher.
Shares in Allied Irish Bank rose 6.1 percent after investors chose to focus on an operational performance broadly in line with expectations instead of a 2.37 billion euros charge for impairment loans.
The DJ STOXX European Insurers Index was up 0.7 percent. AXA rose 3.9 percent after Europe's second-biggest insurer by market capitalisation posted a smaller-than-expected decline in first-half earnings.
MINERS DOWN, DEUTSCHE BOERSE FALLS
Mining stocks fell and the DJ STOXX European Basic Resources Index was the top sectoral decliner, down 1.3 percent.
BHP Billiton, the world's third largest iron ore miner, fell 2.3 percent. The company said Chinese iron ore stockpiles were receding to more normal levels.
Anglo American, Antofagasta and Rio Tinto were down 1.2-2.9 percent.
Shares in German stock and derivatives market operator Deutsche Boerse fell 6.3 percent after the company late on Tuesday reported a 34 percent fall in second-quarter operating profit, missing market expectations.
"Cost guidance was confirmed, which is negative taking the weak environment into consideration. July trading figures released on Monday showed a continuation of low activity on Xetra and the lowest number of traded contracts for Eurex this year," said DZ Bank analyst Matthias Duerr.
Later in the session, investors will focus on durable goods numbers and July ISM data in the United States.
"Should the U.S. ISM non-manufacturing index climb to 49 like its manufacturing counterpart, it would probably foster expectations that the U.S. recession is coming to an end," Commerzbank wrote in a note.
In Europe, the deep recession in the services economy eased in July, but there was a significant divergence among euro zone countries and employment conditions worsened, a survey showed.
Across Europe, UK's FTSE 100 index was 0.3 percent lower, Germany's DAX was down 0.2 percent and France's CAC 40 was 0.4 percent higher.
