April 16 (Reuters) - European shares edged higher on Thursday as growing optimism about a potential resolution to the Middle East conflict lifted market sentiment, while investors assessed corporate earnings reports across the region.
The pan-European STOXX 600 index was up 0.3% to 618.96 points as of 0711 GMT.
Major regional markets also rose, with France's CAC and London's FTSE 100 adding 0.2% and 0.3%, respectively.
Hopes for peace in the Middle East gained momentum after U.S. President Donald Trump
said talks between Israel and Lebanon would take place on Thursday, while the Financial Times reported a ceasefire could be announced soon, citing Lebanese officials.
Meanwhile, in Europe, the corporate earnings season was in full swing, providing investors with crucial insights into company performance amid ongoing geopolitical uncertainties.
In sectors, technology rose 1.3%, leading the gainers.
Conversely, the travel and leisure sector was down 1%, while telecommunications stocks fell 0.5%.
Among individual stocks, Barry Callebaut plunged 8.2% after the Swiss chocolate manufacturer said it sold less of its cocoa products in the first half of its financial year, citing weak demand and market overcapacity.
The STOXX 600 is on pace to recoup all losses incurred since the outbreak of the conflict on the back of improving investor sentiment.
However, concerns over how rising oil prices might affect European economies, which heavily rely on energy imports, have caused European equities to underperform their Wall Street counterparts.
(Reporting by Ragini Mathur)
