Strong company reports bolstered European shares on Wednesday though banking stocks weighed as doubts around US tax reform plans dented investor sentiment in the sector, and Credit Agricole fell after reporting a fall in profits.

The pan-European STOXX 600 steadied by 0830 GMT, recovering from the previous session's fall. Euro zone stocks and blue-chips rose 0.1 per cent.

Banks were the weakest sector, down 0.7 per cent and following the lead of financials on Wall Street which dipped on skepticism around a much-anticipated Republican plan to cut corporate taxes.

Also weighing was French bank Credit Agricole, which said weak trading had dented third-quarter profits, sending its shares down 4.6 per cent.

Analysts have turned negative on euro zone bank earnings after upgrading expectations for much of the past year as sentiment improved over a recovering economy, according to Thomson Reuters I/B/E/S data.

Elsewhere strong earnings supported the index. Dutch supermarket chain Ahold Delhaize rose 4.5 per cent after profits beat forecasts and it struck an upbeat tone for growth in 2018.

French gaming company Ubisoft touched a fresh record high after it beat its second-quarter sales target, boosting its shares up 7.9 per cent to lead gainers.

Earnings drove robust gains from German firms Symrise , Brenntag and Heidelbergcement as well.

Biggest fallers included Austrian materials firm Wienerberger and German electronic payment firm Wirecard, down 5.2 to 5.3 per cent.

Overall, third-quarter earnings for MSCI Europe are expected to grow 10 per cent in dollar terms, according to the latest Thomson Reuters data. This rises to 12.1 per cent when looking at euro zone constituents alone.

Slightly fewer companies than average have reported estimate-beating revenues and earnings.

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