* FTSEurofirst 300 up 0.5 pct, Germany's DAX up 0.6 pct
* Strong corporate results lift market
* Vivendi rallies after Telefonica's bid for Brazilian unit
By Francesco Canepa
LONDON, Aug 5 European shares rose early on
Tuesday as strong results from German car maker BMW and other
blue-chip stocks supported an otherwise subdued market.
Shares in BMW traded 2.9 percent higher after the
luxury car maker reported a higher than expected second-quarter
operating profit, helped by new off-road models and strong China
Deutsche Post also reported a better than
expected quarterly operating profit as an economic recovery in
Europe and North America boosted trade flows, sending its shares
up 2.2 percent.
Both stocks were helping Germany's DAX regain some
ground. It has underperformed other euro zone indexes in recent
sessions due to its larger exposure to Russia, whose economy is
being hit by international sanctions imposed for its role in the
The DAX was up 0.6 percent at 9,205.25 points by
0723 GMT, with the pan-European FTSEurofirst 300 0.5
percent higher at 1,336.58 points.
"I don't think the German market is out of the woods yet,"
said Markus Huber, a senior trader at Peregrine & Black, who
expected the DAX to fall to 9,000 points.
"At the moment we're taking a breather but we should be
going down after that."
France's CAC was also up 0.6 percent, helped by
surges in the country's third-biggest listed bank, Credit
Agricole and media group Vivendi.
Agricole rose 6.1 percent after its quarterly results, with
brokers saying the bank's profit before tax was higher than
expected despite a 708 million euro ($950 million) hit from its
stake in troubled Portuguese lender Banco Espirito Santo
Vivendi added 3.5 percent after Spain's Telefonica
presented a 6.7 billion euro ($8.99 billion) offer for the
French firm's Brazilian unit GVT. Vivendi said none of its
subsidiaries were for sale.
The broader market may get a steer from Purchasing Managers
Index surveys for the euro zone's three largest economies -
Germany, Italy and France - and the euro bloc as a whole, due to
be published between 0745 GMT and 0800 GMT.
The FTSEurofirst 300 has fallen nearly 4 percent over the
past two weeks, pummelled by concerns about a tightening of U.S.
monetary policy, financial troubles at Banco Espirito Santo and
geopolitical tensions ranging from Ukraine to Gaza.
With all these concerns still present in the market, traders
said the downtrend may resume shortly.
"Nothing has materially changed since last week and
everything that was weighing the bulls down is still firmly
wrapped around their necks," Jonathan Sudaria, a dealer at
Capital Spreads, said in a trading note.
"The down move may have stalled and some markets have had a
modest up tick but traders are already framing this as a
textbook dead cat bounce."
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Reporting by Francesco Canepa; Editing by Catherine Evans)