European shares rise after UK rate cut, lifted by financials and industrials

(ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets) Adds BoE decision, updates prices)

* STOXX 600 up 0.8 pct, extends gains after UK rate cut

* Siemens rises after raising outlook

* French group BIC also surges after H1 update

* Shares in Hikma slump

By Sudip Kar-Gupta

LONDON, Aug 4 (Reuters) - European shares rose on Thursday as a rise in the shares of major financial and industrial stocks such as Aviva and Siemens boosted the region’s equity markets.

The pan-European STOXX 600 index rose 0.8 percent by 1132 GMT, although it remains down 7.5 percent so far in 2016. The index extended gains after the Bank of England cut interest rates for the first time since 2009, while Britain’s FTSE turned higher and was up 1.4 percent.

“Today’s BoE action is a significant step in attempting to support the UK,” said Nandini Ramakrishnan, Global Market Strategist at JP Morgan Asset Management.

The prospect of lower rates and more monetary stimulus measures from the Bank of England and European Central Bank (ECB) have enabled European stock markets to recover from the hit they suffered in late June, following Britain’s shock vote to quit the European Union.

Europe’s continuing corporate earnings season delivered relatively upbeat news from a few heavyweights.

Shares in Siemens rose 4.3 percent after the German industrial group lifted its full-year earnings forecast for the second time this year.

“In our view, the transformation of the conglomerate continues. The Q3 report was better than expected,” said DZ Bank analyst Alexander Hauenstein, commenting on Siemens’ results. He kept a “buy” rating on the stock.

French company BIC also surged 5.2 percent after the stationery and shavers group confirmed its 2016 financial outlook, while insurer Aviva climbed 5 percent after reporting higher interim profits.

However, shares in drugmaker Hikma slumped 12.5 percent after it warned of a hit to profits from its generics unit. (Additional reporting by Danilo Masoni in Milan; Editing by Tom Heneghan)