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* FTSEurofirst 300 index little changed
* Cheaper oil pulls down market
* Accor, ARM gain after results, but ASML falls
* Volkswagen leads FTSEurofirst gainers
By Danilo Masoni and Atul Prakash
MILAN/LONDON, April 20 (Reuters) - European shares steadied around three-month highs on Wednesday as a fall in crude oil prices was offset by some solid earning updates and gains among banking stocks.
The pan-European FTSEurofirst 300 index was up 0.07 percent by 1404 GMT after rising 1.5 percent the day before, when it reached its highest since early January.
Crude oil prices fell on Wednesday after Kuwaiti oil workers ended a three-day strike that had cut the nation’s crude output by around half. Sharp losses on Chinese markets also led to some profit-taking after the recent gains.
“There is probably room for a short-term correction ... following the lead from losses in China and in oil prices,” said Alessandro Balsotti, portfolio manager at JCI Capital in London.
But some solid updates, including those of Europe’s largest hotel group Accor, helped offset the falls.
Accor rose 3.8 percent after the company posted higher underlying sales late on Tuesday, as robust demand for hotel rooms in most markets overcame a weaker performance in France and in recession-hit Brazil.
Shares in several companies reacted sharply on Wednesday after their announcing quarterly results. About 4 percent of the companies in the STOXX Europe 600 index have reported earnings, of which 60 percent have met or beaten analyst forecasts, according to Thomson Reuters StarMine.
Chip maker ARM Holdings, power grids maker ABB , telecoms operator Telia rose following earning updates. .
But ASML fell 2.6 percent after figures on new orders came in weaker than expected.
Banks rose 2 percent, leading the sectoral gainers. Shares in Deutsche Bank, UniCredit and Santander all rose by 3.2 and 4.3 percent.
Volkswagen rose more than 7 percent, leading the gains on the FTSEurofirst, on optimism it can offer U.S. authorities an acceptable resolution of its emissions-test-rigging case.
Today’s European research round-up
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Mike Dolan, Markets Editor EMEA. (Editing by Jeremy Gaunt)