Europe open: Stocks push higher after better-than-expected China data

European stocks rose in early trade, as investors took heart from some better-than-expected Chinese trade figures.

At 0845 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were 1.1% firmer and France’s CAC 40 was up 1.3%.

The latest trade out of China showed exports fell 1.4% in December in US dollar terms, which was better than the 8% drop expected by economists.

Meanwhile, imports declined 7.6%, which was better than the 11% slide forecast by economists.

“Despite high volatility and heightened unease, markets are showing signs of stabilisation after a torrid start to the year, with European stocks moving higher once again this morning. While Chinese stocks are lower overnight, elsewhere in Asia markets have bounced in response to surprisingly good Chinese trade data for December and the stabilisation in the renminbi,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“Just as it is darkest just before dawn, the current outpouring of doom-laden views may also act as a harbinger of a possible turnaround in market sentiment, as contrarian investors view the heightened fears and scaremongering as a sign that the market has priced in overly negative views.”

On the corporate front, Sodexo rose after the food services and facilities management company posted first quarter organic revenue growth of 4.7%.

Dutch insurance group Aegon surged after announcing a €400m share buyback programme and lifting its 2015 dividend.

Elsewhere, Banco Popolare and Banca Popolare di Milano rallied following a report the banks were close to agreeing a deal on a merger.

In London, supermarket retailer Sainsbury's nudged up after its third quarter sales were better than expected and the company said the second half was likely to see an improvement.

Still to come on the macroeconomic calendar, Eurozone industrial production for November is at 1000 GMT.