European shares hold on to small gains

London - European stocks held on to small gains on Wednesday despite disappointing results from Dutch marine services group Fugro, among other firms, partly offsetting optimism ahead of a US Federal Reserve policy announcement.

Fugro sank 22% after it warned that it will not pay a dividend for 2014 due to deteriorating markets and price pressure on oil and gas projects.

Sentiment also took a knock after a profit warning from Italian oil industry services group Saipem, which sent shares in sector peer CGG down 3.4%.

On the upside, investors welcomed oil major Total's decision to maintain its dividend while pressing ahead with cost cuts after falling oil prices squeezed its third-quarter profits. The shares rose 1.7%. The broader FTSEurofirst 300 index of top European shares was up 0.3% at 1 320.93 points by 13:42, rising for the fourth of the past seven sessions albeit in low volume.

Trading volume on the index was equal to less than a third of its full-day average for the past 10 days.

Global shares have rebounded during that time after a sharp pullback, as investors took heart from generally strong corporate earnings, especially in the United States, and the prospect of an accommodative stance from Federal Reserve.

READ: Global markets: Shares rise on investor faith

The market expects the Fed's Federal Open Market Committee to announce it will end years of stimulus measures this month but also send a soothing message by signalling interest rates are not likely to rise soon.

"The volumes into the rally are waning," Monument Securities head of sales, Andy Ash, said.

"As we approach the FOMC meeting and the month end, we have catalysts to pivot once again."

Outlook mixed

European corporate results, have been largely in line or above expectations so far although outlooks remained mixed. Industrial group Schneider Electric rose 2.3% after reporting a 7% rise in third-quarter sales and saying Western Europe showed long-awaited but fragile signs of stabilisation.

Europe's largest semiconductor company STMicroelectronics shed 9.1% after posting higher-than-expected quarterly net profit but saying margins would be flat and revenue would fall in the final quarter due to a softening market.

Spanish bank BBVA, down 3.2, weighed on the Euro STOXX banking index as it reported a lower-than-expected net profit for the first nine months of the year and said its investment in improving its digital banking offering could hit profits in the fourth quarter.

About a third of companies listed on the STOXX Europe 600 benchmark index have reported results so far in the earnings season, with 67% of them meeting or beating profit forecasts, and 59% meeting or beating revenue forecasts, according to Thomson Reuters Starmine data.

In absolute terms, European companies have posted a 13.6% rise in quarterly earnings and 0.7% in revenue.