European Shares Rebound On China Optimism

European stocks advanced on Friday after China’s cabinet vowed to act decisively in ramping up support for the ailing economy.

Investors were also reacting to comments by U.S. President Joe Biden that a U.S. recession isn’t inevitable and that the country was “in a stronger position than any nation in the world to overcome inflation.”

Meanwhile Eurozone inflation rose to a record high of 8.1 percent in May on an annualized basis, Eurostat said in a final reading.

The pan European Stoxx 600 was up 1.3 percent at 408.05 after tumbling 2.5 percent on Thursday to its lowest level in 16 months on recession worries.

The German DAX rallied 1.2 percent, France’s CAC 40 index climbed 1.1 percent and the U.K.’s FTSE 100 was up 1 percent.

Volvo gained 1.3 percent. Its unit Volvo Energy has announced an investment of SEK 50 million for 10 percent in the U.K.-based, second-life battery energy storage specialist Connected Energy.

Spanish lender Santander added 2.3 percent after naming Héctor Grisi its next chief executive.

Tesco shares were little changed. The retailer said it was seeing early indications of changing customer behavior due to pressure on households from soaring inflation.

Miner and trader Glencore rallied 2.4 percent after saying it was on track for a record full-year performance.

Media firm Future surged 6.2 percent after it has made an “encouraging start” to the second half, supported by a return to audience growth.

EssilorLuxottica SA shares rose 2.7 percent. The provider of ophthalmic lenses and frame said it will buy back up to 2.5 million shares in the period starting from June 17 to August 31, for a price not exceeding 200 euros per share.

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