Defensives, upbeat earnings lift European shares

(Reuters) – European shares edged higher on Tuesday following a clutch of upbeat quarterly earnings reports, but investors remained cautious of a resurgence in new coronavirus cases as hard-hit economies lift lockdowns.

The pan-European STOXX 600 index <.stoxx> rose 0.4% by 0726 GMT, with gains STILL led by telecoms <.sxkp>, healthcare <.sxdp> and utilities <.sx6p> – sectors that investors seek during times of economic uncertainty.

Boosting UK’s FTSE 100 <.ftse>, Vodafone’s shares jumped 3.9% after the world’s second-largest mobile operator met expectations with a 2.6% rise in full-year core earnings and maintained its full-year dividend payout.

German broadcaster ProSiebenSat.1 Media surged 10.2% to the top of STOXX 600 after U.S. private equity house KKR revealed that it had acquired a stake of 5.2% in the struggling company.

Gains in Europe followed a risk-averse mood in Asian trading hours after the Chinese city of Wuhan, where the pandemic originated, reported its first new cases since its lockdown was lifted.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva)