The biggest decline in European equities since October was put aside on Thursday as Nestle SA and TUI AG rallied after reporting earnings.
Shares of the world’s largest food company climbed 2.7 percent, the most since January, after it reported that first-half sales increased more than analysts had estimated. TUI rallied 6.6 percent after the tour operator said profit growth will be at the upper end of its forecast.
“Markets can move on from scares like China very quickly,” said Daniel Murray, London-based head of research at EFG Asset Management. “There’s still some attractive features of the European market, with a much better growth environment and with corporate profits finally picking up. The European selloff was just part of a broader, risk-aversion reaction.”
The Stoxx Europe 600 Index gained 1 percent to 386.69 at the close of trading in London, with about 80 percent of its members advancing. It rallied as much as 1.9 percent, also helped by a rebound in shares that slumped the most after China’s currency devaluation. LVMH Moet Hennessy Louis Vuitton SE rose 2.9 percent after sinking 11 percent in two days. Automakers advanced following their biggest plunge since 2011.
The Stoxx 600 tanked 2.7 percent on Wednesday, closing at a one-month low on concern the region’s exporters would suffer from China’s currency devaluation. The gauge fell 7.5 percent from its April record through yesterday.
A.P. Moeller-Maersk A/S jumped 5.9 percent after its container line reported a bigger-than-projected profit. Bottler Coca-Cola HBC AG rallied 7.3 percent after earnings beat estimates. United Internet AG added 2.7 percent as the German provider of Internet services and website-making tools posted a surge in new customers, sales and earnings.
Aegon NV plunged 7.5 percent after the Dutch insurer said second-quarter profitability fell. Bang & Olufsen A/S sank 14 percent after the maker of luxury TVs and stereos said its operating loss widened.
Analysts predict earnings at Stoxx 600 companies will climb 6.5 percent in 2015, with sales up 4.3 percent, according to estimates compiled by Bloomberg.
(A previous version of this story was corrected to amend the day of the week for the VStoxx move.)