BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European shares traded higher on Thursday as investors digested the latest batch of earnings results and reassessed the outlook for U.S. monetary policy in light of Wednesday's 9-3 split Federal Reserve decision to keep rates on hold.
In economic releases, the French economy rebounded in the second quarter, avoiding a recession, driven by robust consumption and exports, flash data from the statistical office INSEE showed.
Gross domestic product grew 0.2 percent sequentially, in contrast to the 0.1 percent fall in the first quarter. The rate came in line with expectations.
Separate set of data revealed that French household spending grew at a faster pace in June on energy and food consumption.
The Bank of England is widely expected to keep the benchmark Bank Rate steady at 3.75 percent for the fifth straight meeting later today, with traders looking for any clues about whether it will raise rates in future.
The pan-European STOXX 600 rose 0.6 percent to 648.69 after falling 0.3 percent on Wednesday.
The German DAX edged up 0.2 percent, France's CAC 40 surged 1 percent and the U.K.'s FTSE 100 added half a percent.
In corporate news, shares of Rolls Royce Holdings surged over 4 percent in London.
The engineering company raised its full-year profit forecast after delivering strong operational and financial performance for the first half of the year.
Energy giant Shell rose about 1 percent after more than doubling its second-quarter profit.
BAE Systems edged up 1.1 percent. After a strong first half, the defense contractor upgraded its sales, profitability and cash flow targets for the year.
Lloyds Banking Group added nearly 2 percent. The lender revealed plans to cut costs, raised its interim dividend and announced a fresh £1bn share buyback after reporting a 23 percent jump in half-year profit.
Dutch lender ING gained 2 percent after reporting stronger-than-expected second-quarter earnings and lifting outlook.
Auto giant Stellantis slumped 5.3 percent after second quarter operating adjusted operating income came in below estimates.
Vinci rallied nearly 5 percent. The French infrastructure and concessions giant beat first-half profit and free cash flow estimates, driven in particular by the dynamitic trajectory of Energy Solutions.
Veolia, a global leader in environmental services, rose 1.7 percent after delivering solid first-half results and raising its full-year profit outlook.
IT services group Capgemini declined 1.7 percent after reporting a sharp fall in first-half net profit.
Air France-KLM climbed 1.5 percent and Deutsche Lufthansa was modestly higher after they submitted bids to acquire a controlling stake in TAP Air Portugal.
Hotel group Accor dropped 1.3 percent after reporting a marginal drop in Q2 revenue per available room.
Conglomerate Bouygues skyrocketed 7 percent after posting improved first-half results.
Schneider Electric surged 6.4 percent after the industrial group reported record first-half revenue and free cash flow.
Drugmaker Sanofi tumbled 3.6 percent despite raising its full-year sales forecast.
Societe Generale rallied 2.4 percent as the bank announced plans to launch a share buyback of €1.5 billion on Aug. 3 at the earliest.
German sportswear giant Adidas plunged more than 17 percent after higher marketing spending for the football World Cup resulted in lower-than-expected quarterly profit.
BMW advanced 1.7 percent. The company reported a slightly better-than-expected profit margin from its automotive business in the second quarter.
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