Europe close: Stocks extend gains after OECD raises short-term growth forecasts

European shares extended the previous day's gains after the OECD upgraded growth forecasts for the global economy, citing the ongoing success of the vaccine rollout and the US’s mammoth $1.9trn stimulus package.

The OECD said it now believes the global economy will grow by 5.6% in 2021, and by 4% in 2022, an increase on forecasts made in December for growth of 4.2% this year and 3.7% next year.

The pan-European Stoxx 600 was 0.76% higher at 420.41 after starting the session in sluggish mood as inflationary fears on the back of rising US bond yields persisted.

Germany's Dax meanwhile added 0.4% to 14,437.94, while the FTSE Mibtel rose 0.57% to 23,816.5 and Spain's Ibex 35 added 0.62% to 8,496.4.

In economic news, data showed German exports unexpectedly rose in January buoyed by robust trade with China.

Danish jewellery maker Pandora topped the gainers board, with the shares up 7.24% after the company reported a 12% rise in February organic sales.

Shares in serviced offices provider IWG fell as the company said it would be forced to shutter more underperforming locations as a result of the market recovery from the coronavirus pandemic was taking longer than anticipated.

UK insurer and asset manager M&G rose more than 4% as the company reported a better-than-expected 31% fall in 2020 operating profit to £788m pounds in its first full year as a standalone company.

German automotive parts maker Continental AG fell 7% after it reported a 12.7% drop in group sales, thanks in part to falling revenue in the automotive, rubber and powertrain divisions.