ROME: European stocks were higher on Wednesday, as markets recovered from the previous session’s sharp losses, although gains were expected to remain limited by sustained volatility in Asia.
During European morning trade, the EURO STOXX 50 climbed 0.67%, France’s CAC 40 gained 0.73%, while Germany’s DAX 30 advanced 0.79%.
Investors remained cautious amid ongoing volatility on Asian equity markets. Shares in Shanghai plunged over 4% at the open of trading on Wednesday.
Market volatility increased after data on Tuesday showed that manufacturing activity in China contracted at its fastest rate in three years in August, while service sector activity also slowed.
The weak data fueled fears over a worsening slowdown in the world’s second-largest economy.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) climbed 0.75% and 1%, while Germany’s Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) rallied 1.39% and 0.68%.
Among peripheral lenders, Italy’s Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1.33% and 1.49% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) added 0.18% and 0.11%.
Elsewhere, Novartis AG (SIX:NOVN) rallied 1.36% after the Swiss pharmaceutical company it formed a partnership with California biotechnology group Amgen Inc (NASDAQ:AMGN). to develop new drugs for Alzheimer’s disease and migraines.
In London, FTSE 100 gained 0.62%, boosted by gains the pharmaceutical sector, as Astrazeneca (LONDON:AZN) advanced 1.80% and rival comapny Hikma Pharmaceuticals surged 4.85%.
