Europe trades slightly higher on bumper day of earnings

European stocks traded higher on Thursday morning as investors keep an eye on a bumper morning of earnings and remain focused on continuing volatility in China markets.

The pan-European Stoxx 600 opened 0.6 percent higher but pared gains to trade near 0.2 percent by mid-morning.

Birtain's FTSE 100 was trading around 0.4 percent higher while the French CAC and German DAX saw 0.2 percent pop.

It's another mega day of earnings with a large number of companies reporting results.

Diageo reported full-year earnings on Thursday and said organic net sales were flat while pre-tax profit rose slightly as it continues to nurse a hangover in many drinks categories. Shares in the spirits maker were trading down 0.5 percent.

Shell said earnings in the second quarter, on a current cost of supplies (CCS) basis, came in at $3.4 billion - down from $5.1 billion for the same quarter a year ago. The Anglo-Dutch multinational also said lower oil prices could continue for a number of years, but the company's stock was trading 3.8 percent higher.

BT, the British telecoms giant, announced better-than-expected net profit of £511 million ($797 million) for the first quarter on Thursday, but shares in the firm were down 2.3 percent.

Deutsche Bank reported second-quarter earnings in line with expectations but said litigation charges were 1.2 billion euros, dragging down the group's bottom line. Despite this, Deutsche Bank was trading 2.5 percent up.

State-backed Royal Bank of Scotland reported a rise in second-quarter profit despite booking a £1.05 billion restructuring charge. Shares were trading around 0.5 percent higher by mid-morning.

Telecom equipment maker Nokia reported a 51 percent year-on-year rise in profits in the second quarter of 2015 with operating profit in its key networks business up 11 percent. Shares surged over 7.5 percent.

Siemens reported better-than-expected earnings sending shares in the company 3.1 percent higher.

Pharmaceutical giant AstraZeneca reported a smaller-than-expected decline in revenues in the second quarter and said upped its revenue guidance for the full year. Shares in the company traded 2.2 percent higher.

Renault shares plunged 7.4 percent after the French carmaker said new registrations were up just 0.8 percent in the first half of the year.

Swiss Re fell 2.8 percent after the open following a second quarter earnings report that missed analysts expectations.