ROTTERDAM: European shares rose on Wednesday, supported by stronger-than-expected growth in Germany’s economy, although concerns over a possible rise in inflation and lofty equity valuations kept gains in check. The pan-European STOXX 600 was up 0.5%, with Germany’s DAX leading regional gains as data showed bullish exports and solid construction activity helped Europe’s biggest economy to grow by a stronger-than-expected 0.3% in the fourth quarter.

Travel stocks jumped 1.1% to hover near one-year highs on optimism around major countries lifting coronavirus-induced lockdowns, while construction and retail stocks rose 1.1% and 0.9%, respectively.

The benchmark STOXX 600 has rebounded nearly 50% from its March 2020 lows, also led by historic stimulus measures, but it has still far underperformed a 75% jump in the US S&P 500. London’s export-heavy FTSE 100 rose just 0.1%, lagging other European stock indexes, as the pound jumped to a three-year high against the dollar.

In company news, AstraZeneca dropped 0.7% after it told the European Union that it expects to deliver less than half the COVID-19 vaccines it was contracted to supply in the second quarter.

Britain’s Lloyds Banking Group’s gained 1.6% after outgoing Chief Executive António Horta-Osório set out fresh targets to expand the lender’s insurance and wealth business and further cut costs.

Consumer goods maker Reckitt Benckiser gained 0.6% after recording its strongest sales in its history, while German sportswear company Puma dropped 2.9% after saying it expects a heavy impact on its results from pandemic lockdowns through the end of the second quarter.