GLOBAL MARKETS: European Stocks Edge Up On Upbeat Corporate News

--Stocks push up on strong corporate news
--Corporate news helps to offset soft manufacturing data
--Fed Bernanke's remarks and ECB's latest LTRO assessed


LONDON (Dow Jones)---European stock markets pushed a little higher Thursday, supported by strong corporate earnings from some of the region's leading blue-chip companies, which helped to overshadow softness in euro zone and U.K. manufacturing data.

At 0933 GMT, the benchmark Stoxx Europe 600 index was up 0.4% at 265.26. London's FTSE 100 index was 0.5% higher at 5902.74, Paris's CAC 40 index rose 0.2% to 3459.49 and Frankfurt's DAX was up 0.4% at 6885.83.

It was corporate news that helped markets to climb higher. Deal news was the highlight with shares of Cable & Wireless Worldwide soared 18% on reports that India's Tata Communications may make a bid for the U.K. group. Elsewhere, shares in Swiss-listed staffing company Adecco rose 4.2% after it said full-year sales rose 10% last year and net profit increased by around 22.7%. U.K. listed hedge fund Man Group shares rose 8.8% after it said funds under management had increased slightly in the first two months of 2012 and it had seen an improvement in investor sentiment since the end of last year.

Meanwhile, advertising giant WPP rose 3.7%, after it said it was cautiously optimistic for another strong performance this year as it reported a sharp rise in annual profit, driven by strong growth in emerging markets and corporate investment in brands. Kazakhstan's biggest copper producer Kazakhmys' shares gained 1.6% after it reported a 1.4% rise in its full-year adjusted earnings and said its growth projects are proceeding well.

The upbeat corporate picture helped to offset weakness in euro-zone manufacturing data. The Markit purchasing managers index for the manufacturing sector rose to 49.0 in February from 48.8 in January, unchanged from a preliminary estimate. A figure of less than 50 indicates a contraction in activity.

In the U.K., the manufacturing PMI dipped to 51.2 in February from 52.0 in January, just below the 52.0 that the market was anticipating. But the headline index remains above the break-even 50 level, so the report offers hope that the U.K. can avoid a technical recession after the economy shrank 0.2% in fourth quarter of 2011, said ING Bank, but it added "it is going to be a bumpy ride."

At the same time, investors were assessing Wednesday's developments by central banks. At his testimony to Congress Wednesday, Federal Reserve Chairman Ben Bernanke played down the prospect of further quantitative easing in the near term, expressing surprise at the recent improvement in the jobs market, and suggesting that gas prices could push inflation higher.

Traders also pondered Wednesday's latest action by the European Central Bank in doling out another EUR530 billion in its long-term refinancing operation, or LTRO, for European banks. "While the LTRO should materially ease the euro zone deleveraging process, credit conditions are still tight in Spain, Italy, Central and Eastern Europe, which could require further targeted policy action and time," said Morgan Stanley.

In foreign exchange markets, the euro shrugged off a sluggish morning start and edged higher against the greenback after the ECB's long-awaited second LTRO met with strong demand Wednesday. Credit Agricole said that it no longer expects the ECB to cut rates in March, although it maintained "the view that additional monetary easing is warranted as economic growth remains structurally weak and unemployment is rising." It added that the "LTRO results are also buying the ECB more time."

By 0931 GMT, the single currency was at $1.3339 against the greenback from $1.3324 late Wednesday in New York, and at Y108.13 versus the yen from Y108.13. The dollar was at Y81.15 against the yen from Y81.14.

Meanwhile, spot gold was at $1,723.60 per troy ounce, up $27.30 from its New York settlement on Wednesday. April Nymex crude oil futures were 16 cents higher at $107.23 per barrel, while April Brent oil futures were up 56 cents at $123.22. The March bund contract was down 18 ticks at 139.71.