UPDATE 3-European shares get a lift from strong earnings, U.S. GDP

  • Reuters
  • Stock Market News
UPDATE 3-European shares get a lift from strong earnings, U.S. GDP

* Banks up after U.S GDP data

* Safran up after strong earnings

* Healthcare bolstered by Sanofi results

* Oil stocks drag London's FTSE lower

(Updates to closing)

By Susan Mathew

April 26 (Reuters) - European shares finished higher on Friday as some strong earnings and data showing U.S. economic growth in the first-quarter beat expectations helped cut losses from earlier in the session.

The pan-European STOXX 600 index .STOXX closed up 0.2 percent, led by drugmaker Sanofi and aero engine maker Safran, on upbeat earnings, while a turnaround in banks to the black after U.S. data also helped overcome the day's losses of up to 0.9 percent.

Positive U.S. economic growth came as a relief, helping STOXX 600 post gains on the week, after dismal economic data from South Korea and Germany earlier this week had sounded alarm bells on global growth. April, its has so far gained over 3 percent, on course to extend monthly gains to a fourth straight month.

But, STOXX 600 had briefly retraced session highs hit on the data as investors digested that the burst in growth was driven by temporary factors that are likely to reverse in the coming quarters.

While most country indexes rose, London's energy-heavy FTSE 100 .FTSE ended lower as a fall in crude prices hurt oil majors. O/R

Banks benefited with gains by HSBC HSBA.L , Standard Chartered STAN.L and Commerzbank CBKG.DE helping the sector index .SX7P overcome earlier losses logged on disappointing results from RBS RBS.L and Deutsche Bank DBKGn.DE . .SXDP , which is also seen as a defensive sector, was a bright spot. Gains of 3.5 percent by French drugmaker Sanofi SASY.PA after it returned to growth with higher profits and revenues for the first-quarter was the biggest boost to the pan-region index. SAF.PA followed, up 3.4 percent, after it outpaced revenue growth plans in the first quarter. Along with positive outlook by Renault RENA.PA and Ford F.N and Valeo VLOF.PA , it took Europe's auto sector 0.9 percent higher. that Renault will propose to Nissan Motor Co 7201.T a plan to create a joint holding company which would give both firms equal footing, also aided the rally in the French automaker. AG CONG.DE advanced after it backed its outlook for the year despite reporting a fall in first-quarter earnings. satellite operator SES SESFd.PA led media stocks .SXMP higher after it maintained its full-year outlook on the back of the company's Networks division. on the broader regional benchmark index were oil stocks .SXEP , tracking a decline in oil prices after U.S. President Donald Trump said he called OPEC and told the cartel to lower oil prices. O/R

France's Total TOTF.PA fell after it reported a falling first-quarter net profit. Glencore GLEN.L slipped 3.3 percent as U.S. regulators investigated if the company engaged in 'corrupt practices'. stocks in the region including Siltronic WAFGn.DE , Ams AMS.S and STMicroelectronics STM.MI lost after Intel Corp INTC.O reduced its full-year revenue forecast, adding to concerns that an industry-wide slowdown could persist until the end of 2019.

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