European midday: BNP Paribas, HSBC boost banks

Banks are leading the way on Europe's main markets after forecast-beating quarterly figures from BNP Paribas and HSBC.France's biggest listed bank is leading the way, up almost 5%, after reporting a better-than-expected 31% rise in second-quarter net profit on Monday.Net profit for the three months to July rose to €2.1bn up from €1.6bn a year earlier. Revenue increased 12% to €11.17bn.The Paris-based bank said the performance "demonstrated the robustness of its diversified, integrated and customer-driven banking model." HSBC gave a signal that the banking sector may be returning to normality after the credit crisis as it posted interim profits that more than doubled on the back of a sharp reduction in bad debts. In the half year to June 30, the bank saw pre-tax profits jump to US$11.1bn from $5bn over the same period the previous year.Societe Generale, Credit Agricole, Commerzbank and UBS are also in demand.Industrial gases maker Linde advanced after second quarter profit jumped a forecast-beating 86%.Across the markets, the Dax in Frankfurt is 99 points higher at 6,247, with the Cac in Paris adding 74 points to 3,717. The Swiss market has risen 89 points to 6,290.On the downside, auto stocks including Renault have dropped after UBS cut its stance on the European car sector to underweight from neutral.TNT is also on offer after the delivery company's second-quarter operating profit missed forecasts, dropping 69% to €55m.The Dutch firm also said it will fully split its mail and express operations into separate companies.BP is gearing up to begin sealing the broken Maconda well in the Gulf of Mexico either tonight or tomorrow, more than three months after an explosion sparked the biggest environmental disaster in American history.Elsewhere, the Markit eurozone manufacturing purchasing managers index rose to a better-than-expected 56.7 in July from 55.6 in June.In China, data released over the weekend showed a slowdown in manufacturing activity. The China Federation of Logistics and Purchasing and the National Bureau of Statistics said the country's official PMI fell to 51.2 in July from 52.1 in June, the third consecutive monthly decline. It also expanded at the slowest rate in 17 months in July. The data boosted hopes that China will take a more cautious approach to tightening monetary policy.CAC 40 - RisersBNP Paribas (BNP) € 55.13 +4.59%ArcelorMittal SA (MT) € 24.30 +3.89%Dexia (DEXB) € 3.89 +3.40%Suez Environnement Company (SEV) € 14.70 +2.94%Societe Generale (GLE) € 45.52 +2.90%Technip (TEC) € 52.56 +2.86%Bouygues (EN) € 33.31 +2.82%Veolia Environnement (VIE) € 20.93 +2.75%GDF Suez (GSZ) € 26.18 +2.71%Vallourec (VK) € 76.57 +2.49%CAC 40 - FallersRenault (RNO) € 33.81 -1.26%Alcatel-Lucent (ALU) € 2.29 -0.39%