* Daimler up on higher Mercedes-Benz sales
* German stocks lead gains
* Nokia on track for worst day since 2001
* ECB announcement at 1145 GMT
(Updates after German, French data)
By Lisa Pauline Mattackal and Agamoni Ghosh
Oct 24 (Reuters) - European shares gained on Thursday as
upbeat results from German companies offset a dour profit
forecast from Nokia and a mixed bag of business sentiment
indicators ahead of the European Central Bank's October policy
meeting.
The pan-European stock index .STOXX rose 0.3% by 0815 GMT,
on track to reach its highest level this month with German
stocks .GDAXI driven by robust earnings from Daimler and a
confirmation from chemicals giant BASF of its annual outlook.
"Companies like BASF and Daimler which had reduced earnings
earlier this year today said they aren't cutting their outlook
any further," said Chris Bailey, European strategist at
brokerage Raymond James.
"Even though that is not brilliant what you want to see as
an investor is an end to the downgrades."
Daimler DAIGn.DE jumped 4.7% after higher sales of its
Mercedes-Benz cars boosted operating profit for the
third-quarter, helping the sub-index of auto stocks .SXAP
reach its highest since early May.
BMW BMWG.DE and PSA Group PEUP.PA both gained over 1%,
lifting some of the gloom surrounding the sector after last
week's poor results from Renault RENA.PA and Volvo VOLVb.ST .
Healthcare stocks .SXDP were also higher after AstraZeneca
AZN.L gained 3.2% on a strong set of numbers that spurred
another hike in its product sales forecast.
European markets entered the third quarter earnings season
this month in nervous form, with signs that Germany was heading
into recession weighing on expectations for growth across the
region.
ECB chief Mario Draghi holds his last meeting on Thursday
after eight years at the helm with monetary policy appearing to
have reached its limits for the euro area. His successor
Christine Lagarde is expected to ask member governments for
fiscal support to help energize growth. On a sour note, Nokia NOKIA.HE was on track for its worst
day since 2001, plummeting 21% after cutting its 2019 and 2020
profit outlook as the company faces pressure from rivals in the
5G industry. The telecom maker's report dragged tech stocks .SX8P lower
for a third straight day, and weighed on Helsinki-listed stocks
.OMXHPI , which fell 2%.