European shares rise on solid China data
European shares rose on Wednesday as upbeat Chinese trade data buoyed global stock markets.
|||London - European shares rose on Wednesday as upbeat Chinese trade data buoyed global stock markets, with mining stocks among the best performers.
The pan-European FTSEurofirst 300 index rose 1.4 percent while the euro zone's blue-chip Euro STOXX 50 index advanced 1.7 percent.
The FTSEurofirst remains down around 7 percent so far in 2016, due partly to concerns about a China-led slowdown in the global economy.
However, data on Wednesday showed that China's exports in March returned to growth for the first time in nine months, adding to signs of stabilisation in the world's second-largest economy.
The latest update from China also lifted mining stocks, given China's role as the world's biggest consumer of metals, with Anglo American rising 7.2 percent while Rio Tinto climbed 5.4 percent.
Italian bank stocks also rose after Italy's Economy Minister Pier Carlo Padoan told financial daily Il Sole 24 Ore that there was no risk that European authorities will block the fund set up to help buy shares in upcoming stock issues at distressed lenders and purchase soured loans.
“Miners and banks are leading the market rally today, but the general global economic outlook remains weak,” said Mirabaud Securities' equity sales executive Rupert Baker, highlighting the IMF's cut to its global growth forecast this week.
Shares in Swedish medical technology company Elekta surged 6 percent after investors welcomed the appointment of Richard Hausmann as its new chief executive.
However, Premier Foods shares slumped around 30 percent after US spice maker McCormick Foods walked away from a bid for Premier Foods.
Tesco shares also fell after a cautious outlook statement took some of the shine off its first quarterly sales growth in three years.
REUTERS