*

Infineon jumps 7% on Q2 sales beat

*

Zalando surges on Q1 operating profit beat

*

French cognac cos up on China's open attitude to trade

dispute

*

German exports rebound in March; industrial orders

disappoint

(Updated at 0805 GMT)

By Ankika Biswas

May 7 (Reuters) - European shares hit a

more-than-one-month high on Tuesday, as a slew of positive

corporate earnings, including from Switzerland's UBS and Italy's

UniCredit, added to the upbeat sentiment surrounding interest

rate cuts.

The pan-European STOXX 600 was up 0.4%, as of 0805

GMT -- after closing at a one-week high on Monday -- fuelled by

increased bets of rate cuts by the Federal Reserve and the

European Central Bank this year.

"It is also that the ECB and the BoE will start cutting

rates sooner, and irrespective of the Fed. ECB has already

indicated that the first rate cut will likely be in June," wrote

Mohit Kumar, Jefferies' chief economist in Europe.

"We are still looking for around 0.5% (economic) growth for

Europe and the UK for 2024."

Some of that will hinge on the euro zone's retail sales

data, due later in the day, especially after data showed German

exports rebounded in March but disappointing industrial orders

dashed hopes for a swift economic recovery.

Among headlining stocks, UBS jumped 8% after the

lender's first quarterly profit since taking over Credit Suisse

was three times analysts' expectations.

The financial services index climbed 2.2% to a

three-week high, leading sectoral gains.

UniCredit, Italy's second-largest bank, gained

3.1% to a 13-year peak, steering the banks index 1%

higher, as it raised its investor reward guidance after posting

a much higher-than-expected profit and boosting capital levels.

The retail sub-index also rose 1.3% as Germany's

Zalando gained 6.9% after delivering a

better-than-expected first-quarter operating profit.

German chip manufacturer Infineon climbed 7.1%

after better-than-expected second-quarter sales, with analysts

expecting long-term growth despite a full-year guidance cut.

Further, spirits makers Remy Cointreau and Pernod

Ricard jumped 6.1% and 2.6%, respectively, after

Chinese President Xi Jinping's "open attitude" towards a trade

dispute over French cognac.

On the flip side, German software developer TeamViewer

dropped 8.6% after a first-quarter results miss.

Danish medical equipment maker Coloplast dropped

5.1% after a second-quarter earnings miss.

German health technology company Siemens Healthineers

lost 4.6% following a second-quarter revenue growth

miss, with its China revenue declining by 14%.

Germany's Fresenius Medical Care shed 6.5% after

only maintaining its 2024 profit outlook despite a first-quarter

operating earnings beat.

Elsewhere, Britain's FTSE 100 hit a record high, up

0.9%, boosted by a 1.5% gain in Shell after Reuters reported its

plans to sell the Malaysian gas station business.