European shares edged higher on Tuesday, helped by gains among miners and banking stocks, but luxury goods companies were among the worst performers after a disappointing update at LVMH.
The pan-European FTSEurofirst 300 index and the euro zone's blue-chip Euro STOXX 50 index were up 0.3 per cent and 0.5 per cent, respectively by 0954 GMT.
LVMH fell 2 per cent after the luxury goods industry leader posted first-quarter sales below forecasts as tourist shopping in key markets such as France and Hong Kong remained low.
The update dragged down the shares of its rivals, with Burberry down 2.2 per cent and Kering down 1 per cent.
The mining sector index rose 2.3 per cent, making it the top sectoral gainer, supported by steady copper prices and encouraging economic signals from China.
Banking stocks rose 1.4 per cent with the Italian lenders up for a third straight session following a state-orchestrated deal to create a fund to shore up weaker banks.
However, the rally in Italian banks appeared to lose steam as some investors expressed scepticism over the plan.
“The problem with the Italian bank fund is that it is not big enough and it risks compromising the banks that are already in a much better shape,” said Francois Savary, chief investment officer at Geneva-based investment and consultancy firm Prime Partners.
The FTSEurofirst has fallen nearly 10 per cent since the start of 2016 as concerns about a China-led global economic slowdown weigh on world stock markets.
But strategists at HSBC kept an “overweight” position on continental European equities.
“We continue to argue that Europe offers the best earnings story globally, although it has been disappointing so far, with the market being hurt by global growth concerns. We see a robust business cycle, policy support, and investor under-ownership," they wrote in a note.