Europe open: Shares make strong start as earnings please

(Sharecast News) - European shares opened higher as earnings season continued with the benchmark Stoxx index making a strong start to Tuesday. The pan-regional index was up 0.3% to 542 at 0827 BST with all major bourses higher.

"US markets put last week in the rearview mirror. Stocks surged across the board with encouraging breadth as investors dived back in," said Hargreaves Lansdown analyst Matt Britzman.

"Friday's soft jobs report has reignited the argument that the Fed should be cutting, and markets are now almost certain of a cut in September, putting the odds at 94%. The potential for rate cuts, alongside a strong earnings season, is proving enough of a cocktail to keep the fire lit under US stocks."

In equity news, UK consumer group Smith & Nephew led the gainers with a 12% jump after reporting earnings. Miner Fresnillo and drinks maker Diageo also gained after results.

Reporting by Frank Prenesti for Sharecast.com