European shares steady as mixed earnings offset China stimulus hopes

European shares steadied near five-week highs on Tuesday, with miners and luxury stocks in the lead after China pledged more support for its slowing economy, but mixed earnings reports limited the upside.

The pan-European STOXX 600 index was flat by 0709 GMT after Asian stocks rallied on signs of more stimulus that would focus on boosting domestic demand in China.

Miners jumped 2.3% to lead gains in Europe as metal prices climbed on hopes of improving demand from top consumer China. [MET/L]

Luxury stocks such as LVMH (EPA:LVMH) and Richemont (LON:0QMU), which are heavily exposed to China, rose more than 1% each.

Remy Cointreau gained 5.0% after the French spirits group said it was banking on a sharp rebound in sales in the U.S. from the third quarter.

Unilever (LON:ULVR) climbed 5.1% after the consumer giant reported better-than-expected underlying quarterly sales growth as it again raised prices to make up for higher costs.

However, Bayer (ETR:BAYGN) slipped 2.6% as the German drugs and pesticides maker cut its full-year earnings outlook and announced a 2.5 billion euros ($2.8 billion) write-down due to further deterioration in demand for glyphosate-based weed killers.

Denmark’s DSV fell 4.1%, even as the world’s third-largest freight forwarder raised its full-year profit guidance.