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Banks and autos drive European shares higher as UniCredit shines

Banks and autos drive European shares higher as UniCredit shines
A man talks on a phone at the Madrid stock exchange which plummeted after Britain voted to leave the European Union in the EU BREXIT referendum, in Madrid, Spain, June 24, 2016. REUTERS/Andrea Comas   -   Copyright  Andrea Comas(Reuters)
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LONDON (Reuters) – European shares bounced back on Tuesday as investors cheered UniCredit results but gave Germany’s Commerzbank a damp reception, while an outlook cut from Pandora dented the stock.

Europe’s gains came on the heels of a stronger trading session in Asia as investors’ focus shifts from a murky, complex trade war to company earnings which they can more easily pin down and price in to markets.

UniCredit shares <CRDI.MI> rose 2.2 percent to the top of the FTSEMIB after Italy’s biggest lender by assets reported second-quarter profits fell less than expected.

The Italian index <.FTMIB> rose 0.6 percent, out-doing the pan-European STOXX 600 which gained 0.3 percent.

Commerzbank <CBKG.DE> shares fell 3.5 percent to the bottom of Germany’s DAX, however, as investors reacted badly to a weaker-than-expected capital buffer, and its forecast for lower revenues from corporate clients in 2018.

Danish jewellery maker Pandora <PNDORA.CO> sank 18 percent to the bottom of the STOXX 600 after cutting its sales and profit margin guidance for this year, announcing both measures fell in the second quarter.

Industrial machinery and equipment maker Oerlikon <OERL.S> jumped 9.7 percent after reporting.

Schaeffler <SHA_p.DE> shares climbed 5.9 percent after the car parts maker raised sales guidance for its industrial division.

It helped boost the autos sector <.SXAP> up 1 percent, among top gainers. Germany’s DAX <.GDAXI> also jumped 0.6 percent thanks to its carmakers.

Meanwhile shares in Europe’s biggest pure online fashion retailer, Zalando <ZALG.DE>, fell 6.9 percent after it trimmed its sales and profit outlook for the year, following results that missed expectations.

(Reporting by Helen Reid; editing by Danilo Masoni)

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