European shares surge

• AstraZeneca rises as it sees growth picking up

• Commerzbank tumbles as quarterly loss deepens

• Credit Agricole soars on better-than-expected Q4

MILAN/FRANKFURT: European shares edged higher on Thursday, still on track to end the week flat, as investors kept close watch on a barrage of earnings reports from companies for clues on the pace of business recovery.

The pan-European STOXX 600 index was 0.3% higher in early trading, after having gained nearly 3.5% so far in February.

"Investors are assessing whether to take some profits after decent gains or continue riding February's uptrend," said Hussein Sayed, chief market strategist at FXTM.

The STOXX 600 is about 5% below its peak of February 2020 after a rally of about 50% since it crashed in March, aided by historic monetary and fiscal stimulus.

"However, markets do not move in straight lines and a 5% to 10% correction could happen any time soon ... taking some profits may be something to consider in the short term," FXTM's Sayed said.

AstraZeneca rose 1.7%, among the top boosts to the STOXX 600, after the COVID-19 vaccine developer beat quarterly product sales estimates and forecast 2021 revenue growth.

European healthcare stocks were up 0.5%, while technology shares added 1.0% and were among the top sectoral gainers.

The banks sector dropped 0.5% as Germany's Commerzbank tumbled 5.3% after the lender said its loss deepened in the fourth quarter.

France's second-biggest listed bank Credit Agricole jumped 5% after posting better-than-expected fourth-quarter results.

Danone rose 2.9% after investment company Artisan Partners demanded corporate governance and strategic changes, including separation of the French food group's chairman and chief executive officer roles.

Schneider Electric rose 1.8% as the French company said encouraging trends in data centres and connected living should help boost its core profit margin and sales this year.

Clariant dropped 2.6% after the Swiss specialty chemicals maker said full-year 2020 sales slipped 5% in local currencies, as demand was hurt by the COVID-19 pandemic.

Swedish defence company Saab fell 6% after posting fourth-quarter profits below market forecasts.

Investors also kept a close watch on signs of progress around the proposed $1.9 trillion US stimulus bill, while awaiting a reading on Americans filing applications for weekly unemployment benefits later in the day.