European equities have bounced back after falling for four consecutive sessions. This shows investors are regaining their appetite for risk.
European stocks rose by their largest amount in three months, after good growth in manufacturing and particularly the service sector. Commodities benefited from the low dollar across the Atlantic – with gold hitting a record high earlier in the day. There were also gains for other base metals, such as nickel and zinc. Share prices at French car company Renault jumped by 4.6 per cent. Douglas Holding AG, Europe’s largest make-up and perfume retailer, saw its share price rise by 6 per cent. Markets in London, Paris and Frankfurt all rose by the close of the day.