European stocks hit month-high supported by strong earnings

European stocks rose on Tuesday to their highest level in more than a month, supported by strong earnings results for companies, including banks such as the Swiss UBS and the Italian UniCredit, in addition to optimistic sentiment regarding lowering interest rates.

By 0710 GMT, the European STOXX 600 index rose 0.6 percent after closing at its highest level in a week on Monday.

According to Reuters, UBS shares jumped 6.3% after the bank announced a three-fold increase in net profit in the first quarter, in the first quarterly profit achieved by the bank since its acquisition of its competitor, Credit Suisse.

The financial services index rose 1.8%.

UniCredit shares, the second largest Italian bank, rose by about three percent.

German chip maker Infineon shares rose 6.5%. But the company announced a cost rationalization program after lowering its profit expectations for the full year.

On the other hand, Danish medical equipment maker Coloplast shares declined 5.1%.

Stocks also received support from a decline in yields on euro zone bonds due to increased bets that the Federal Reserve (US central bank) and the European Central Bank will cut interest rates this year in the wake of weak jobs data in the United States on Friday.