UPDATE 2-Burberry bounce helps to push European stocks to 1-week high

* Burberry has strongest day since October 2012
* Paris-listed stocks outperform as luxury stock rise
* Britain's FTSE rises as pound hit by Brexit woes

(Updates to close)
By Sruthi Shankar and Amy Caren Daniel
July 16 (Reuters) - British fashion brand Burberry's shares
jumped on Tuesday, lifting other luxury goods makers, while
upbeat earnings from big Wall Street banks spurred gains for the
region's lenders, driving major European markets to their
highest closing levels in a week.
Burberry's shares BRBY.L surged 14.4%, their biggest
one-day gain in 7 years, as quarterly results showed demand for
new designs by creative chief Riccardo Tisci picking
up. Upscale retailers in Europe, including Hermes HRMS.PA ,
Louis Vuitton owner LVMH LVMH.PA and Gucci parent Kering
PRTP.PA , rose between 0.4% and 2%, helping France's CAC 40
index .FCHI outperform its European peers with a 0.65% gain.
Britain's FTSE 100 .FTSE rose 0.6%, as a weaker pound
boosted London-listed multinationals. GBP/
The euro was also dented after data pointed to a
deterioration in confidence among German investors, helping
exporters on the pan-European STOXX index .STOXX , which rose
0.35% at 389.10, its highest closing level since July 8.
"It is ultimately a story on the dollar strength and
European currency's weakness," said Joshua Mahony, senior market
analyst at IG.
The second-quarter earnings season gets going in Europe this
week, with major companies such as SAP SAPG.DE , ASML ASML.AS
and Novartis NOVN.S set to report results over the next two
days.
That will be a test for the recovery in stock markets since
May on the back of expectations that an easing of central bank
monetary policy globally would prop up consumer demand and avert
a recession.
Companies listed on the STOXX 600 index are expected to
report earnings growth of 0.2% in the quarter, among the weakest
in years and down from 0.8% estimated a week ago, according to
data from I/B/E/S Refinitiv. "The question is how high market expectations are going
into an earnings season that is expected to provide another
batch of largely flat or negative earnings figures," IG's Mahony
said.
"Business confidence is low, and global growth has taken a
hit, so the forward looking outlook will be critical for
traders."
Shares of European banks .SX7P rose 0.7% after major U.S.
lenders J.P. Morgan JPM.N , Goldman Sachs GS.N and Wells
Fargo WFC.N reported better-than-expected quarterly earnings.
Ryanair's RYA.I shares gained 2.2% and its European rivals
jumped after the world's biggest budget airline halved its
growth plans for next year due to delays in deliveries of
Boeing's BA.N grounded 737 MAX jet. Lufthansa LHAG.DE , British Airways-owner IAG ICAG.L and
Air France AIRF.PA all gained about 3% as the news eased fears
that a surge in new capacity for the Irish carrier would put
pressure on ticket prices.
Norway's Yara YAR.OL , among the world's largest fertiliser
makers, rose 4.2% after its quarterly earnings beat estimates.