Europe midday: Early gains stick, technology issues pace gains

Stocks in Europe are recovering from the prior session's losses helped by upbeat manufacturing sector data out of Germany and Chinese survey data showing the quickest pace of growth since 2011.

Investors were also heartened by forecasts for a smaller economic downturn in the former.

"Overall it is a healthy morning for stock markets, which have taken their cue from some better economic data overnight in Asia, while indices in mainland Europe have continued to move higher in the wake of gains in the US," said IG chief market analyst Chris Beauchamp.

As of 1231 BST, the benchmark Stoxx 600 was edging up 0.17% and trading at 367.13, alongside a 0.55% rise for the German Dax to 13,018.84 while the Italian FTSE Mibtel was adding 0.41% to 19,713.52.

Euro/dollar was again moving higher alongside, adding 0.45% to 1.1990.

From a sector standpoint, Technology issues were the best performing group on the Stoxx 600, climbing 1.9%, together with a 0.97% advance for Basic Resources.

Lenders' shares however were down by 1.37%.

In German news, economy minister, Peter Altmaier, bumped up his forecast for 2020 GDP growth from -6.3% to -5.8%, although that meant the rebound penciled in for 2021 was no seeen reaching 4.4% instead of 5.2%.

"Overall, we can say that at least for now, we are dealing with a V-shaped development," he said.

Altmaier also dismissed any need for another full lockdown of the German economy to guard against the pandemic.

Underscoring the improved mood in the euro area's largest economy, survey compiler IHS Markit's factory sector Purchasing Managers' Index improved from a reading of 51.0 for July to 52.2 in August.

The Italian PMI revealed a similar improvement, but those for France and Spain both retreated back below the 50.0-point mark.

Headline euro area inflation on the other hand slowed from a year-on-year pace of 0.4% to -0.2% (consensus: 0.2%).