European stocks rise as fears of China's economic crisis ease

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European stocks rise as fears of China's economic crisis ease

On Thursday, Chinese stocks rose as a rebound in travel stocks and overnight strength in Wall Street helped offset concerns about the slowing economy of China that dragged down miners.

The Pan-European STOXX 600 Index rose 0.7%, bouncing off a high six week closing price in the previous session.

Travel leisure rose 3.1% to beat a four-day losing run, while automakers rose 0.6% to a one-month high.

Europe's largest low-cost carrier Ryanair surged 5.6% after raising its long-term traffic forecast. Rivals Wizz Air, easyJet, British Airways-owner IAG and EasyJet gained almost 4% each.

While European stocks came under pressure from concerns about China's economy and the fallout from debt-ridden developer China Evergrande Group's financial troubles, Asian stocks traded on a firm footing as strong U.S. data on Wednesday reinforced optimism about a recovery in the world's largest economy

Mining companies such as Rio Tinto, Anglo American and BHP Group were among the top drags as metal prices fell after China reiterated plans to release more metal from its reserves.

Die German automotive supplier Vitesco fell 2.5% below STOXX 600 after the spin-off of its vehicle Continental AG.

The utilities index edged up 0.1% after a near 3% fall on Wednesday. Spain quickly passed emergency measures to reduce power bills earlier this week raising concerns over the hit to utilities' profits.

Spain's Endesa and Iberdrola extended losses for a third day to fall to their lowest level since 2020.

Is Italy also looking to introduce short-term measures to offset the expected rise in retail power prices, a Minister said in radio interview.

Stocks in the sector are suffering from the risks of regulatory intervention, as in Spain, and it will be necessary to see how other governments in Europe will intervene, Equita analysts said.

Current prices do not reflect high energy and gas prices. Lagardere magazine owner plunged 20.3% after media group Vivendi said it would buy another share in the company, paving the way for a full takeover of the company.

British fashion brand Superdry jumped 14% after it forecast a recovery in full-year 2022 revenue.