By Barbara Kollmeyer

MADRID (MarketWatch) -- European stocks traded higher Thursday as a clutch of key companies reported financial results, with Nokia, Fiat and Pernod Ricard all moving higher as Credit Suisse weighed on the downside after showing a sharp drop in profit.

The Europe Stoxx 600 index gained 0.3% to 266.98 in early afternoon trading.

Stocks were underpinned by broad-based gains for U.S. markets on Thursday, led by materials and energy stocks. Futures were pointing to a higher start for Wall Street amid an equally busy day for earnings and economic news in the U.S.

Among the headlining stocks reporting in Europe, shares of Nokia Corp. (NOK) jumped 7.2% in Helsinki. The rally came as the handset manufacturer swung to a $560 million third-quarter operating profit, earning 0.14 euros a share against a year-earlier loss of 0.15 euros.

In Italy, shares of Fiat SpA jumped 3.3% after the automaker said third-quarter profit jumped to 190 million from 25 million a year earlier. The company also revised higher its forecast for 2010.

Food, beverage, bank and mining sectors were in the lead on Thursday.

A cluster of companies reported in France, with positive market reaction helping lift the French CAC-40 index higher, up 0.8% to 3,857.85.

In the food and drink sector, shares of Pernod Ricard SA rose 5.5%. Sales for the company's fourth quarter rose 14%, edging past analysts' estimates.

"Overall a strong set of numbers from Pernod Ricard with organic sales growth in the quarter significantly ahead of our forecasts and the performances of Diageo," said analysts at Davy Stockbrokers in a research note.

Shares of Diageo PLC also rose, up 5.4% in London.

Danone SA rose nearly 5%, gaining after the French dairy giant reported a rise in quarterly sales and confirmed its full-year targets.

On the downside, shares of Remy Cointreau SA fell 1.5% after it reported a 15% increase in revenue, driven by cognac sales, but noted modest growth in Europe.

Also perking up Paris, shares of Publicis Group SA rose 3.5% after it reported a 26% rise in revenue for the third quarter, beating analysts' estimates. Publicis cited an upturn in the global advertising market as helping organic growth rise 9.2%.

Banks as a sector were higher, but shares of Credit Suisse Group AG (CS) fell 2.5%. The Swiss giant reported a 74% drop in profit as activity for its investment-banking unit slowed, disappointing investors.

Shares of HSBC Holdings PLC (HBC) rose 1.5% in London. The bank reportedly bought land for commercial building in the Sha Tin area of Hong Kong for HK$816 million, according to Bloomberg News.

 
   Gains for HSBC helped underpin the FTSE 100 index   up 0.7% to 5,766.38.

Also helping out in London was British Airways , shares of which jumped nearly 4%.

The move higher reflected on market hopes a long-running and costly dispute between the carrier and its unions may be coming to an end. The Financial Times reported the company will fully restore travel perks, though only after a delay, according to people familiar with the situation.

On the downside, shares of TUI Travel PLC slumped nearly 10% after the group restated prior-year financial results and announced its chief financial officer is stepping down at the end of the year. Tullow Oil PLC also fell, down 3.5%, after reporting that a well drilled in waters off the coast of Ghana encountered a water-bearing reservoir.

Miners rose across the board in London, with gold futures also higher. Shares of Anglo American PLC rose 2% as the company reported that third-quarter platinum output rose 11% and that diamond output was up 15%.

In Germany, the DAX 30 index saw support from autos such as Volkswagen AG , up 2%, as well as air carrier Deutsche Lufthansa AG , up 1.8%. The DAX itself gained 0.7% to 6,572.95.

Economic data out of Europe on Thursday showed private-sector activity in the euro zone during October grew at the slowest annualized pace in a year.

Markets also will cast an eye across the Atlantic, with corporate results due from a handful of high-profile companies. In addition, weekly U.S. jobless claims are due at 8:30 a.m. Eastern, followed by Philly Fed and leading indicators data due at 10 a.m.