European shares bounce after three days of losses

LONDON (BestGrowthStock) – European shares rose on Wednesday, snapping a three-day losing streak, after better-than-expected Chinese export data boosted hopes for global economic recovery.

The pan-European FTSEurofirst 300 (.FTEU3: ) index rose 1.8 percent to a provisional close of 997.84 points, having been as low as 978.84 earlier in the session. The index had fallen in each of the three previous sessions, on worries about Europe’s debt crisis.

“It’s a relief rally. I think we’re due a technical recovery,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz.

“Whether it’s a one-day wonder we don’t know. The only sure thing is high volatility. Q1 earnings were good, and Q2 may be good, but macro trumps micro now. The acceleration of the recovery is fading. There is a chance of a double dip.”

Banking stocks added most points to the index. Banco Santander (SAN.MC: ), Credit Suisse (CSGN.VX: ), HSBC (HSBA.L: ), Societe Generale (SOGN.PA: ) and UniCredit (CRDI.MI: ) rose between 1.4 and 4.7 percent.

Market sentiment was boosted after sources said China’s May exports data came in above expectations, reassuring investors concerned that Europe’s debt problems could dampen demand for Asian goods.

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(Reporting by Brian Gorman)

European shares bounce after three days of losses