European shares rise as earnings boost business confidence

European shares rose on Thursday as traders saw broadly positive earnings and awaited a slew of purchasing managers’ index (PMI) readings from across Europe that could guide the European Central Bank’s rate cut.

The pan-European STOXX 600 index was up 0.3% by 0708 GMT, with travel and leisure stocks leading the gains.

A batch of early PMI readings are expected to show contracting business activity in the bloc, which could prompt the European Central Bank to take another step to cut interest rates, according to Reuters.