The European indices stage a solid comeback from three-month lows, with the recovery led by the German stocks on the back of heavy gains seen in the auto sector.
Europe tracks China stocks as well as oil price recovery
The stocks on the European bourses tracked the recovery seen in the Chinese equities. Most major Chinese indices closed in the green after huge losses booked the day earlier. Moreover, the rebound in the oil prices from around $ 30.50 also helped lift the market sentiment and boosted the energy and resource stocks.
The gains in the auto sector supported the bounce in the stocks, with Volkswagen and BMW both climbed around 3%, while Daimler added 2.4%. While the French carmaker Peugeot jumped 4.76% after reporting solid world-wide sales growth for last year, lifted mainly by strong demand in Europe.
Germany's DAX 30 index rallies 2.09% to 10,048, while the UK's FTSE 100 index gains 1.09% to 5,935. Among other European indices, the French CAC 40 index jumps 2.02% to 4,399, while the pan-European Euro Stoxx 50 index is up 1.44% to 3,081.