European markets lifted on upbeat earnings

Stocks rose in Europe on Wednesday (July 29th) on upbeat earnings and signs that China’s market jitters are fading.

Gains in US markets the day before also lifted shares ahead of the policy decision by the Federal Reserve.

The FTSEurofirst 300 rose half a per cent, boosted by earnings releases from car maker Peugeot and oil firm Total.

In the UK, the FTSE 100 index of leading shares rose 0.7 per cent as Barclays spiked after improved profits for the first six months of the year.

Sky was up more than two per cent after adding almost one million customers in the year. Volkswagen shares dipped two per cent on lower quarterly profit despite the German firm edging out Toyota in the first half of the year to become the world’s largest car maker.

Earlier, shares on the Shanghai Composite Index rose three per cent, steadying the mood after Monday’s steep plunge.

On Wall Street, investors were looking ahead to Facebook’s earnings update after Tuesday saw a sharp fall for Twitter.

Shares in the microblogging site sank by up to 11 per cent after chief financial officer Anthony Noto warned that user growth was slowing. The company’s stock had initially leapt after it easily topped earnings forecasts.

“Our Q2 results show good progress in monetisation, but we are not satisfied with our growth in audience," said Jack Dorsey, Twitter's co-founder and interim CEO. "In order to realise Twitter's full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter's value faster and better communicate that value."

Oil was down again, with US light crude dropping half a per cent to trade below $48 a barrel after Tuesday’s rally saw it bounce off a four-month low.

Exxon Mobil and Chevron are among the big oil majors with earnings releases this week.

Investors were also looking towards the outcome of the Fed’s two-day policy meeting later on Wednesday.

The market appears to be betting on a September rate hike, but investors will be looking for any signs of movement from the central bank.