Financials drive European stocks bounce after Fed hit

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European shares recovered from early losses on Thursday as a solid batch of bank...

- European shares recovered from early losses on Thursday as a solid batch of bank earnings outweighed the impact of falling expectations of U.S. interest rate cuts and a slump in Shell shares after its worst results in more than two years.

Barclays gained 2.7% after the British bank raised its interim dividend following a resilient performance by its trading unit that contrasted with weakening numbers at U.S. competitors. “This would appear to be a welcome boost for CEO Jes Staley whose strategy for turning the bank around has come under fire.”

The continent’s biggest online-only fashion retailer, Zalando , underlined that trend, climbing 10.2% after raising its full-year profit outlook and following upbeat earnings from sportswear maker Puma on Wednesday.

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