European shares bounced back from recent losses on Wednesday as risk appetite improved after US Federal Reserve Chairman Ben Bernanke said the central bank was prepared to introduce more stimulus measures if the economy weakened further. The market also got some support from stronger mining shares, which gained 1.6 percent on data showing China's economy grew 9.5 percent in the second quarter from a year ago, not far off the 9.7 percent expansion in the first quarter.
The Euro STOXX 50 volatility index, one of Europe's main barometers of sentiment, fell 6.3 percent, indicating a rise in investors' risk appetite. The FTSEurofirst 300 index of top European shares closed 0.7 percent higher at 1,099.09, after falling in the past three sessions on lingering concerns about the eurozone debt crisis, as investors reacted positively to Bernanke's comments.
After recovering from the steepest recession in generations beginning in the summer of 2009, the US economy has lost momentum in recent months. Gross domestic product expanded just 1.9 percent in the first three months of the year, and the second quarter does not look to have been much better.
Automobile shares featured among the top gainers on expectations that global demand for vehicle will gradually pick up. Traders said a positive Morgan Stanley note on the sector as another factor driving share prices. Tech shares were among the worst hit, with the sector index down 0.4 percent. ASML Holdings fell 2.7 percent after saying customers were holding back on new orders as sales of computers and mobile phones slowed, joining a list of technology firms warning over weak consumer demand.
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