Europe open: Shares higher on strong Asia, corporate earnings

European stocks were higher at the opening on Tuesday on the back of gains on Asian markets and positive corporate earnings.

The pan-European Stoxx 600 was up 0.04% at 389.3. London's FTSE 100 was up 0.6% at 7,557.53 with hard-line Brexiteer Boris Johnson widely expected to be crowned PM today,

Markets.com chief analyst Neil Wilson said investors would be waiting to find out “what all shakes out in terms of the regime shift. Remember this is not just a new leader, but an entire new regime”.

"The content, tone and emphasis from Number 10 will be very different to what we had under May. We would reiterate that there is a heightened prospect of no-deal under BoJo, yet when faced with the realpolitik of it all, a compromise may well be found,” he said.

In corporate news, paper and packaging group Mondi was the standout gainer after saying that half-year underlying earnings would be higher than the €852m (£765m) reported in 2018 as it forecast a big jump in earnings per share.

Peers Smurfit Kappa and DS Smith also racked up healthy gains.

Positive corporate results Swiss bank UBS and Apple supplier AMS also helped to boost sentiment.

Computer accessories maker Logitech was up 6% after confirming 2020 targets for sales growth and operating income.

Smith & Nephew was on the rise after an upgrade to 'buy' at Berenberg, while insurer Beazley advanced as it said first-half earnings nearly tripled compared to latest year and it expects double-digit premium growth over the year.

On the downside, Tesco, Sainsbury and Morrisons were all in the red as the latest data from market research firm Kantar showed that sales at Britain's big four supermarkets dropped over the last 12-week period.

Imperial Leather maker PZ Cussons was in the red after it posted a drop in full-year profit as solid performances in Asia Pacific, Europe and the Americas were offset by weakness in Africa.