European shares advance on earnings optimism, GKN surges
* FTSEurofirst 300 index rises 0.6 percent
* GKN, Next, Orange advance after earnings reports
* Caution on concerns of more sanctions against Russia
By Atul Prakash
LONDON, July 29 (Reuters) - European equities climbed higher on Tuesday, with strong earnings reports from companies such as engineer GKN and retailer Next outpacing the threat to the region's economy from further sanctions against Russia.
GKN surged 8.2 percent after its car parts supply division boosted first-half profits, while clothing retailer Next gained 2.8 percent after raising its guidance for annual sales and profit. Telecom firm Orange was up 2.4 percent after results.
"Markets are receiving a bid from better-than-expected earnings. It's understandable why markets remain buoyant even with current geopolitical risks," Michael Jarman, head of equity strategy at H2O Markets, said.
"However I believe that markets are trading at fair value and I see upside stock market returns as limited ... so protecting your portfolio is something that investors should start to consider."
The FTSEurofirst 300 index of top European shares was up 0.6 percent at 1,377.67 points by 1424 GMT, helped by positive earnings reports. Continuación...