European shares extend gains on upbeat Nestle, Volvo earnings

European stocks moved towards record highs on Thursday after stumbling earlier in the week, as a set of strong earnings reports brightened sentiment ahead of the European Central Bank's policy decision. The pan-European STOXX 600 index rose 0.4% by 0707 GMT, extending gains for a second straight session after fears of a new wave of COVID-19 cases pushed European markets to their worst day in 2021 on Tuesday.

European stocks moved towards record highs on Thursday after stumbling earlier in the week, as a set of strong earnings reports brightened sentiment ahead of the European Central Bank's policy decision.

The pan-European STOXX 600 index rose 0.4% by 0707 GMT, extending gains for a second straight session after fears of a new wave of COVID-19 cases pushed European markets to their worst day in 2021 on Tuesday. Nestle rose 2.2% after reporting its strongest quarterly sales growth in 10 years, helped by demand for coffee, dairy and petcare products.

Swedish truckmaker AB Volvo jumped 4.6% as it beat market expectations for first-quarter core earnings on the back of surging demand. Credit Suisse fell 5.7% after it posted a 757 million Swiss franc ($825.97 million) pre-tax loss in the first quarter, as the Archegos hit wiped out gains from bumper trading.