European shares rose on Wednesday after a few positive earnings reports lifted sentiment, while worries over the Ukraine war, slowing growth and rising yields kept gains in check.
The pan-European STOXX 600 ticked up 0.4% after shedding 0.8% in the previous session as European and U.S. bond yields surged on Tuesday on expectations of tighter monetary policy. Banks and food & beverage stocks rose 1.6% and 1.4%, respectively.
ASML Holding NV, a key supplier to computer chip makers, climbed 4.4% following a first-quarter sales beat, boosting tech shares.
Danone jumped 7.4% after the French food group posted stronger quarterly sales growth and maintained its 2022 targets, while Heineken NV rose 4.2% on a sharper rise in quarterly beer sales as bars reopened, allowing the firm to also stick to its 2022 forecast.
Commodity-linked mining and oil stocks fell 1.1% and 0.4%, respectively.
Rio Tinto fell 2.6% after reporting lower iron ore shipments in the first quarter and warning of risks from inflation, China's pandemic-related lockdowns and the Ukraine war.
"Despite the risk rebound, headwinds are likely to prevail in the short term, as lingering risks of a war escalation and sanctions are augmented by tougher central banks and increased signs of slowdown," said Michele Morganti, equity strategist at Generali Investments.
The STOXX 600 has declined 6% on the year so far, with cyclical bank shares and financial services down 5% and 10%, respectively.
Credit Suisse fell 1.7% after the Swiss bank said it expects a first-quarter net loss and higher negative impacts from Russia's invasion of Ukraine.
Siemens Gamesa slipped 1.4% after posting a quarterly loss, while parent Siemens Energy dropped 4.5% after saying it also had to review its annual forecast.
Food delivery company Just Eat Takeaway.com firmed 2.9% after saying it is in talks for a possible sale of its U.S. arm Grubhub and reported quarterly results.
France's CAC 40 gained 0.5%, the most among regional peers, ahead of a key debate between presidential election candidates Emmanuel Macron and Marine Le Pen before Sunday's runoff vote.
Elsewhere in the region, German producer prices rose 30.9% on the year in March, reflecting the effects of the Ukraine conflict for the first time.
(Reporting by Anisha Sircar in Bengaluru; Editing by Amy Caren Daniel and Shounak Dasgupta)