(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. See the bottom of the report for more details)
* FTSEurofirst 300 index up 1 percent
* Greek shares outperform broader market
* Pandora surges after results
By Atul Prakash
LONDON, May 10 (Reuters) - European shares advanced on Tuesday, with Danish jewellery maker Pandora surging after strong results and Swiss bank Credit Suisse gaining after its smaller than expected first quarter loss.
The FTSEurofirst 300 index was up 1 percent by 0805 GMT, while Greek shares rose 2 percent after euro zone finance ministers offered to grant Greece some debt relief. However, Germany’s DAX was up only 0.6 percent after data showing industrial output fell more than expected in March.
Eearnings reports set the tone of the market, with Pandora rising more than 10 percent after reporting a bigger than expected rise in first-quarter operating profit on strong sales growth and raising its full-year forecast.
Credit Suisse was up 5.5 percent. Although it saw tough market conditions continuing at least through the second quarter, it posted a lower than expected loss of 302 million Swiss franc ($311 million) for the first quarter.
“This was easily the most shorted name heading into numbers and the market was fearing capital may have moved materially in the wrong direction. The fact that it was flat ... means a classic ‘not as bad as feared’,” a trader said.
British outsourcing group Capita rose 4 percent after saying it was increasingly confident it would grow organic revenue by at least 4 percent this year.
The first quarter earnings season is entering into its last phase. According to Thomson Reuters StarMine, nearly 70 percent European companies have announced results so far, of which 60 percent have met or beaten analysts’ forecasts.
On the downside, France’s Natixis fell 8.6 percent after saying it was looking at ways to boost efficiency as investment banking weakness led to a 30 percent fall in first-quarter net income.
German industrial group Thyssenkrupp fell 5.3 percent after cutting its full-year forecasts on a drop in prices for materials including steel that it said were sharper and longer-lasting than it had expected.
Today’s European research round-up
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Mike Dolan, Markets Editor EMEA.