Europe edges higher as robust earnings offset U.S. stimulus doubts

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Oct 7 (Reuters) - European stocks edged higher on Wednesday as upbeat earnings reports from UK’s Tesco and Germany’s Dialog Semiconductor helped offset uncertainties surrounding a fresh U.S. stimulus package.

The pan-European STOXX 600 index rose 0.2% by 0711 GMT.

Asian stocks and U.S. futures also recovered after sharp losses on Wall Street after U.S. President Donald Trump on Tuesday abruptly called off talks with Democratic lawmakers on coronavirus relief legislation until after the election.

Dialog Semiconductor jumped 5.4% to the top of STOXX 600 after it forecast better-than-expected revenue in its third quarter.

Britain’s biggest supermarket chain Tesco gained 3.6% as it reported a jump in sales and forecast full-year retail operating profit to be at least the same level as 2019-20.

Swedish audiobook streaming group Storytel was up 3.2% after it beat its third-quarter forecast for subscriber growth and streaming revenue. (Reporting by Sruthi Shankar; Editing by Arun Koyyur)