STOXX 600 up 0.2, Swiss stocks outshine peers
Novartis gains after forecast upgrade
Tele2 shares at 5yr low after 39;mixed39; Q2
Ocado surges on return to underlying profit

July 18 Reuters European shares edged higher after a muted start on Tuesday, with Swiss stocks outpacing regional peers following a forecast upgrade by drugmaker Novartis, though a decline in telecom stocks capped the gains.

The panEuropean STOXX 600 rose 0.2 by 0819 GMT, following declines on Monday when Richemont39;s underwhelming results and weak economic data from China pummelled Europe39;s luxury sector.

Novartis climbed 3.6 on Tuesday after the drugmaker raised its fullyear earnings guidance and mapped out the planned spinoff of its generic medicines division Sandoz for early in the fourth quarter.

The move pushed the Swiss Market index, which had led regional declines in Europe on Monday, up 0.6.

Europe39;s healthcare sector, up 0.4, also got a boost from 3.9 gains in shares of Swedish Orphan Biovitrum SOBI after the drugmaker39;s secondquarter earnings beat estimates.

Weighing on the broader STOXX 600 were telecom firms, down 1.7, with Tele2 AB dropping 10.7 to a fiveyear low following mixed secondquarter results.

Declines in the luxury sector amid mounting worries about China39;s faltering economic growth have pressured the benchmark index after stellar gains in the previous week driven by hopes that the U.S. Federal Reserve39;s rate hiking cycle was close to an end.

Meanwhile,…