European stocks are rooted in Powell's testimony as profits

MILAN / LONDON (Reuters) – European stocks rose on Tuesday in a hectic session, while shares were supported by optimistic comments in the testimony of Federal Reserve Chairman Jerome Powell in the middle of a dispute. series of mixed updates.

Telecoms Stocks. SXKP fell the most, down 1.2%, weighed down by a 4% decline in Telenor ( TEL.OL ) after the Norwegian telecom operator published late results on second quarter forecasts.

The declines were offset by the strength of banks and the rebound in mining stocks.

The pan-European STOXX 600 index was up 0.2% at the close. Earlier losses turned to earnings after Powell's testimony, in which the Fed chairman said he saw "several years" of strength in the labor market and low inflation .

Powell's testimony has pushed up the dollar, putting pressure on the euro, which has helped the German DAX heavy index of .GDAXI exporters to outperform. He finished 0.9 percent more.

"Currency weaknesses have outperformed European indices relative to their US peers," said Joshua Mahony, a market analyst at IG.

The eyes were also on the second quarter earnings season.

Husqvarna ( HUSQb.ST ) dropped the most on the STOXX, 17.4%, after the world's largest maker of outdoor power tools reported an unexpected drop in operating profit. His CEO told Reuters that he was expecting a negative tariff effect in 2018 and a bigger impact in 2019.

Banks, supported at the previous trading session by better than expected profits from Deutsche Bank ( DBKGn.DE ]), decreased. SEB ( SEBa.ST ) gained 4.3% after the Swedish bank's net interest income exceeded expectations due to strong corporate demand.

Positive updates also raised shares in the French supermarket Casino ( CASP.PA ), the Norwegian media group Schibsted ( SBSTA.OL ) and the group Swedish medical technology Getinge ( GETIb.ST ), which rose respectively by 3.2%, 12.6% and 10.5%.

Thyssenkrupp ( TKAG.DE ) jumped more than 9% after the resignation of President Ulrich Lehner, raising the hope of a restructuring of the German conglomerate.

"A statement of resignation from Dr. Lehner makes it clear that an aggressive restructuring is perhaps conceivable, supporting our goal of 33 euros in coin prices," said Jefferies analyst, Seth. Rosenfeld.

Elsewhere, trading activity boosted stock price movements.

The Swedish telecommunications operator Telia ( TELIA.ST ) lost more than 4% after agreeing to buy the Norwegian company TDC. The Italian television group Mediaset ( MS.MI ) added 3.5% after making a joint bid for the tower EI Towers ( EIT.MI ).

EI Towers climbed 15.1%.