(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). Adds details, updates prices)
* Pan-European index up 0.3 percent
* Disappointing LVMH update weighs on sector after
* Miners lead gainers on firmer copper prices
* Italian banks rise but rally loses momentum
By Sudip Kar-Gupta
LONDON, April 12 (Reuters) - European shares edged higher on Tuesday, helped by gains among miners and banking stocks, but luxury good companies were among the worst performers after a disappointing update at LVMH.
The pan-European FTSEurofirst 300 index and the euro zone’s blue-chip Euro STOXX 50 index were up 0.3 percent and 0.5 percent respectively by 0954 GMT.
LVMH fell 2 percent after the luxury goods industry leader posted first-quarter sales below forecasts as tourist shopping in key markets such as France and Hong Kong remained low.
The update dragged down the shares of its rivals, with Burberry down 2.2 percent and Kering down 1 percent.
The mining sector index rose 2.3 percent, making it the top sectoral gainer, supported by steady copper prices and encouraging economic signals from China.
Banking stocks rose 1.4 percent with the Italian lenders up for a third straight session following a state-orchestrated deal to create a fund to shore up weaker banks.
However the rally in Italian banks appeared to lose steam as some investors expressed scepticism over the plan.
“The problem with the Italian bank fund is that it is not big enough and it risks compromising the banks that are already in a much better shape,” said Francois Savary, chief investment officer at Geneva-based investment and consultancy firm Prime Partners.
The FTSEurofirst has fallen nearly 10 percent since the start of 2016 as concerns about a China-led global economic slowdown weigh on world stock markets.
But strategists at HSBC kept an “overweight” position on continental European equities.
“We continue to argue that Europe offers the best earnings story globally, although it has been disappointing so far, with the market being hurt by global growth concerns. We see a robust business cycle, policy support, and investor under-ownership,” they wrote in a note.
Today’s European research round-up
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Mike Dolan, Markets Editor EMEA.
Additional reporting by Danilo Masoni; editing by John Stonestreet