European stocks rise for second session on strong earnings reports from major banks

European stocks rose on Thursday, extending gains for the second consecutive session, thanks to a strong rise in the financial services sector following a series of strong earnings reports for major European banks in the second quarter of this year, while the gains were curbed due to hopes receding for further cuts in US interest rates this year.

As of 11:43 GMT, Stoxx Europe 600 rose by 0.4%, and the index ended yesterday's session higher by 0.2%, after positive earnings results for major European companies.

The Stoxx Europe Index rose on Thursday morning to continue its gains for a second straight session, with the majority of Europe's major stock exchanges and sectors in the green zone.

The financial services sector is the top gainer in Europe with a gain of more than 2%, following a series of strong earnings results for major European banks in the second quarter of this year.

Société Générale surged more than 4% after the French bank posted profits above analyst's forecasts in the second quarter, while the bank posted a net profit of 1.05 billion euros, equivalent to 1.16 billion US dollars.

Barclays rose 2 percent after the British bank beat experts' expectations by posting a second-quarter net profit of 1.03 billion pounds ($1.25 billion).

S&P 500 futures rose by more than 0.3%, while the index ended yesterday's session down by 1.1%, the third consecutive daily loss, under pressure from the Federal Reserve's monetary policy meeting and the remarks of the Bank Governor Jerome Powell.

The Federal Reserve on Wednesday made its first cut in US interest rates since the global financial crisis in 2008 and decided to cut borrowing costs in the United States by 25 basis points to 2.25 percent.

Jerome Powell said that the move is an adjustment in the middle of the monetary policy cycle and not the beginning of a strong easing cycle.

In Europe, the Euro Stoxx 50 index rose by 0.4%. In France, the CAC 40 index rose 0.5% to top the gainers list in Europe, and in Germany the DAX added 0.3%.

In London, the FTSE 100 fell by more than 0.2%, as most mining and core resources companies fell.