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STOXX 600 up 0.8%

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Novo Nordisk down after cutting annual profit outlook

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Continental up after Q2 results beat

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Just Eat Takeaway up after J.P.Morgan upgrades to

"overweight"

(Updated at 0830 GMT)

By Pranav Kashyap

Aug 7 (Reuters) - European shares surged on Wednesday,

as a slew of upbeat corporate earnings lifted sentiment,

although gains were tempered after heavyweight Novo Nordisk

missed estimates for its second-quarter operating profit.

The continent-wide STOXX 600 was up 0.8% at 492.21

points, as of 0830 GMT, inching its way towards the key 500

mark. All European markets were trading in the green, with most

of them notching gains of close to 1%.

Among sectors, healthcare was the only one in the

red, slipping 0.1%.

Novo Nordisk dropped 3.4% after the obesity

drugmaker posted quarterly operating profit below expectations

and cut its annual profit outlook.

Shares of Roche gained 1.6% following a report the

Swiss pharmaceutical company is considering divesting cancer

data specialist Flatiron Health.

Corporate earnings took centre stage as investors moved past

the risk-off sentiment emanating from fears of a U.S. recession

that sparked a global selloff in equities earlier in the week.

"Risky assets were higher as positioning is cleaner and dip

buyers started to emerge," Mohit Kumar, chief economist for

Europe at Jefferies said.

In the absence of fresh catalysts, markets are consolidating

as August is generally a month where relatively light trading

volumes are observed.

"It's just a case where people don't want to take too many

big moves in what is traditionally a weaker period for stocks,"

said Chris Beauchamp, chief market analyst at IG Group.

"Earnings are taking over a bit now... there's not too many

macro drivers and perhaps it's a good thing at the moment."

On the data front, German industrial orders rose by more

than forecast in June, providing a glimmer of hope for Europe's

largest economy.

The German benchmark index DAX ticked 0.8% higher.

Car parts maker Continental jumped 4.7% after it

trounced expectations for second-quarter results.

Just Eat Takeaway soared 7.2% after J.P.Morgan

upgraded the rating on the stock to "overweight" from "neutral".

Bucking the trend, German sportswear maker Puma

lost nearly 13% after it narrowed its outlook for full-year core

profit.

Later in the day, investors will closely monitor comments

from European Central Bank member Olli Rehn and board member

Elizabeth McCaul for clues on the central bank's next move.

Commerzbank, one of Germany's best-known banks,

fell 5.5% after its second-quarter net profit dropped 5%.

Beiersdorf slipped 2.7% despite the Nivea maker

reporting a 7.1% organic sales growth for the first half of the

year.