European shares rose in early trade on Tuesday, bouncing from two days of losses, as upbeat corporate news from the likes of Vodafone helped offset some of investors' concerns about the euro zone debt crisis.

However, political developments in debt-ridden Italy, where bond yields have reached euro are record highs, will be very much in focus as the government faces a crucial budget vote.

At 7:14 a.m., the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.9 percent at 982.98 points.

Vodafone rose 1.6 percent after edging its full-year outlook higher as growth in emerging markets and robust trading in northern Europe helped the world's largest mobile operator to post first-half results ahead of forecasts.

Companies have beaten expectations, but that is against lowered expectations, Jeremy Batstone-Carr, strategist at Charles Stanley, said, adding: One of the features of the autumn has been the extent to which the macro picture has trumped the corporate picture.

(Reporting by Brian Gorman)