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EssilorLuxottica gains after revenue rises

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Capgemini drops after expecting 2024 revenue to fall

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NatWest ( NWG ) up on upbeat results, buys Metro Bank's mortgage

unit

(Updated at 0831 GMT)

By Pranav Kashyap

July 26 (Reuters) - European shares ticked higher on

Friday, as gains in EssilorLuxottica offset declines due to a

mixed batch of corporate earnings, while the benchmark was set

for a modest weekly gain.

The pan-European STOXX 600 index moved 0.5% higher

by 0831 GMT after hitting the lowest in more than two months in

the previous session.

"In the absence of a strong negative trigger, there's

positive sentiment coming through from buying the dip and

expectations of monetary policy loosening," said Thomas Gehlen,

senior market strategist at SG Kleinwort Hambros.

"We're in the middle of a pretty turbulent earning season

and it's been proving more of a storm rather than a gentle

tailwind."

EssilorLuxottica jumped 8% after the Ray-Ban

maker's revenue rose 5.2% in the second quarter, supported by

demand in the Europe, Middle East and Africa region.

Luxury stocks rose 2.2%, and were set for their

best day since January, buoyed by a 4.3% gain in Hermes

after the Birkin-bag maker reported a 13% rise in

second-quarter sales, demonstrating the continued appetite from

wealthy shoppers.

The luxury sector took a severe beating this week, dragging

down the STOXX 600 as quarterly reports left investors

underwhelmed.

Deepening the turmoil, European tech shares have

declined 12% over the past two weeks, amid a global sell-off

sparked by disappointing earnings from U.S. tech giants.

The auto sector has lost 1.8% this week after an

annual outlook cut by Porsche and dour quarterly

results from luxury carmakers dented sentiment.

French IT consulting group Capgemini lost 10% on

Friday after saying its annual revenue will fall.

On the flip side, NatWest ( NWG ) gained 7.3% after the

British bank said it would buy Metro Bank's mortgage portfolio

for 2.4 billion pounds ($3.09 billion).

($1 = 0.7772 pounds)

(Reporting by Pranav Kashyap in Bengaluru; Editing by Nivedita

Bhattacharjee and Mrigank Dhaniwala)