STOXX 600 inches lower as investors sift through earnings, higher oil prices

Oct 28 (Reuters) - European shares inched lower on Wednesday as investors weighed a flood of earnings reports from the likes of Deutsche Bank and Santander, with higher oil prices also adding to the muted sentiment.

The pan-European STOXX 600 index was down 0.16% at 642.64 points by 0811 GMT.

Deutsche Bank gained 3.5% after reporting a 2% rise in third-quarter profit, above analysts' estimates, defying expectations for a decline.

On the flip side, Spain's Santander fell 2.9% after third-quarter earnings, leading the bank-heavy Spanish benchmark down 1%, the most among peers.

Oil prices climbed more than 2%, dampening risk appetite ahead of the European Central Bank's rate decision due on Thursday. The energy sector edged 0.4% higher.

Technology names were another bright spot, advancing 0.3% on rekindled AI enthusiasm and ahead of pivotal earnings from Wall Street majors Alphabet and Microsoft, due after US markets close on Wednesday.

(Reporting by Avinash P in Bengaluru; Editing by Janane Venkatraman)