European stocks start September with gains, shake off growth worries

European stocks rose on Wednesday as fresh signs of weakness in Asian economies were countered by hopes for more stimulus, while investors shook off concerns about rising inflation.

After a seventh straight month of gains, the pan-European STOXX 600 started September with a 0.7% rise, inching towards its mid-August record levels.

Asian shares recovered from earlier losses after data showed factory activity across the region lost momentum in August as a resurgence in coronavirus cases disrupted supply chains.

Investors are awaiting manufacturing activity and unemployment data for the euro zone later in the day.

Travel & leisure, insurance and technology stocks were the top sectoral gainers, all rising more than 1%.

French spirits maker Pernod Ricard rose 2.6% after it posted a stronger-than-expected rise in full-year operating profit, driven by a strong rebound in demand in China and the United States.

Supermarket group Carrefour slid 5.2% as luxury goods billionaire Bernard Arnault sold the 5.7% stake he owned in the company.