Technology stocks led European shares higher yesterday after a strong report and outlook from US chipmaker Texas Instruments lifted its European peers, although results in other sectors had a mixed impact.

Europe's third-quarter earnings season started strongly last week as companies benefited from an uptick in economic conditions, driving up expectations and share prices in anticipation the trend would continue.

Yesterday saw French electrical equipment maker Schneider rise 3.6 per cent after it posted a 2.5 per cent dip in third-quarter sales but said underlying sales would improve for the full-year. However, Allied Domecq, the world's second-largest spirits group, fell 4.1 per cent after its annual sales came in slightly weaker than expected, although profits were in line with forecasts.

By 0900 GMT, the FTSE Eurotop 300 index was 0.7 per cent higher at 923 points, while the narrower DJ Euro Stoxx 50 index rose 1.0 per cent to 2,578 points.

"The numbers out of Europe this morning haven't been too much to get excited about, but we had a good rally in the US after we went home and techs are obviously reacting to that," a senior European trader said.