Europe close: Investors brush aside concerns of global recession

European stocks pushed higher, rebounding from heavy losses in the previous session, helped by better than expected economic data Stateside and 'dovish' remarks from one of the US Fed´s most up until now most stalwart 'hawks'.

Investors were also busy wading through a deluge of earnings, brushing aside a large drop in Chinese equities and a warning from economists at Citi that "genuine" economic growth worldwide, allowing for mismeasurements in Chinese data, that is, might dip below 2% - widely acknowledged as the threshhold for recessions globally.

The benchmark DJ Stoxx Europe 600 index rose 1.97% to 326.54 points, Germany’s DAX was up by 1.79% and France’s CAC 40 was 2.24% higher.

“European bourses are taking their lead from the late rally on Wall St shrugging off the slump in Chinese stocks overnight ahead of the G20 meeting in Shanghai,” said Andy McLevey, Head of Dealing at stockbroker Interactive Investor.

Oil prices were back under pressure again, with West Texas Intermediate down 1.8% to $31.58 a barrel and Brent crude down 1.36% to $33.95.

Orders for durable goods in the US jumped by 4.9% month-on-month in January, according to data from the Department of Commerce, easily surpassing the 2.9% projected by economists.

Helping to boost market sentiment, in remarks to CNBC the president of the Federal Reserve bank of St.Louis, James Bullard, said it might be "unwise" to raise rates again now.

In corporate news, Technip pushed up after the French oil services group maintained its dividend and released better-than-expected revenue for the fourth quarter of 2015, while insurer AXA was firmer after posting a 12% gain in 2015 profit.

Lloyds Banking Group surged after it hiked its dividend, although its pre-tax profit for the year was hit by more PPI charges.

RSA Insurance rocketed after its operating profit for 2015 beat analysts’ expectations.

BT Group rallied despite regulator Ofcom saying it may still need to spin off its Openreach infrastructure arm, unless it effectively opens up the network to rivals and implements major reforms.

On the downside, Repsol was in the red after posting a 25% rise in fourth quarter profit, while German consumer goods company Henkel slid despite reporting a jump in fourth quarter profit.

Brewer Anheuser Busch InBev was weaker after its fourth quarter numbers missed expectations.

British American Tobacco was on the back foot after saying full year profit rose but revenue fell.

Zodiac Aerospace, which makes seats for airplane manufacturers, tumbled, as it announced that its restructuring plan will take longer thought and the company will not meet its profit margin goal.

On the data front, Eurostat’s final reading on Eurozone inflation for January came in a little softer than originally estimated and still way off the European Central Bank’s target of just under 2%, adding weight to the argument for further stimulus.

The annual inflation rate in the euro bloc rose to 0.3% in January. This was below 0.2% the previous month and consensus and the initial estimate of 0.4%.

Dennis de Jong, managing director of UFX.com, said: “Mario Draghi will be concerned that inflation has dipped back down from last month’s 0.4% reading, which was the highest since October 2014, and there are a number of very real serious concerns for the ECB.

“Inflation was expected to have risen further by this stage, which heightens the likelihood of further stimulus as early as next month. Caution is very much the watchword for Draghi and co at present.”