(Updates after markets close)

* Zalando slips after lowering profit outlook

* Bayer gains after reporting surprise quarterly profit

increase

* BE Semiconductor gains as Berenberg upgrades to "buy"

By Tharuniyaa Lakshmi, Ragini Mathur and Avinash P

Aug 4 (Reuters) - Europe's STOXX 600 closed at a record high

on Tuesday, lifted by gains in technology stocks and a slate of

corporate earnings updates that helped boost sentiment, while

falling oil prices provided further support.

The pan-European STOXX 600 index was up 0.7% to656.86

points at close, surpassing the previous record set in early

July.

"European main indexes (have been) flirting with record levels

since the end of last month. But already in the past few months,

we have seen consecutive months of gains. One of the main

reasons is definitely the rising corporate profits," said Ruben

Dalfovo, Investment Strategist at Saxo Bank.

With the European earnings season gathering pace, investors

sifted through company updates for clues on the region's

business outlook.

Shares in Bayer rose 2.4% after the German

pharmaceuticals group reported an unexpected 1.9% increase in

quarterly operating profit.

Europe's largest bank HSBC ( HSBC ) shares edged lower 0.8%,

after hitting a fresh all-time high earlier on Tuesday, despite

reporting a better-than-expected first-half profit and raised

its net interest income target.

Dalfovo said HSBC ( HSBC ) delivered strong earnings growth, but that

the results failed to excite investors as expectations were

already high after the stock's strong run over the past few

years.

The technology sector gained 2.8%, with BE

Semiconductor advancing 8.1% after Berenberg upgraded

the stock to "buy", saying recent market weakness has created an

attractive entry point for investors.

Other chip stocks also advanced. Soitec led gains

with a 9.9% rise while Aixtron, ASML and

Infineon were up between 2.6% and 3.7%.

Global chip stocks have recently been volatile as investors

assessed whether AI-driven demand could sustain lofty

valuations.

Mining stocks jumped 3.6%, making them the

best-performing sector,tracking higher metals prices.

On the flip side, Lufthansa shed 8.2% after the

German airlinewarned that operating profit could fall this year

after the figure more than halved in the second quarter due to

higher fuel costs tied to the Iran war.

Energy stocks fell 1.7% for a second straight session as

oil prices hit a three-week low after Qatar said mediators were

making progress in efforts to end the war.

Markets have repeatedly swung between optimism and pessimism

since the conflict began in late February, as both sides have

struggled to reach a mutually acceptable resolution.

Zalando was at the bottom of the STOXX 600, down 13.4%

after the fashion retailer forecast 2026 revenue and growth to

land in the lower half of its previously guided range and

narrowed its adjusted operating profit outlook. Retail stocks

fell 0.7%.