Europe open: Stocks rise in holiday-thinned trade

European stocks rose in early trade, supported by modest gains in Asia.

At 0900 GMT, the benchmark Stoxx Europe 600 index was up 0.7%, Germany’s DAX was 1.3% higher and France’s CAC 40 was up 1.1%.

China’s Shanghai Composite closed up 0.9% on Tuesday, bouncing back from a 2.6% drop in the previous session, after the People’s Bank of China signalled that it may take steps to maintain credit growth and smooth volatility in the renminbi.

“A slow start to the session in Europe today with volumes still on the low side. Asian markets were pretty subdued and we continue to see a higher year end close for European markets from current levels,” said Atif Latif, director of trading at Guardian Stockbrokers.

“With many investors still away till the New Year, volumes will remain low but we see more money flowing into equities as more inflows should be the theme after a lacklustre performance for European equities in 2015.”

Deutsche Bank shares rose after it agreed to sell its stake in Chinese lender Hua Xia for up to €3.7bn in an effort to strengthen its balance sheet.

Adidas was also in the black after the sports retailer’s finance chief, Robin Stalker, denied claims that it was facing pressure from activist shareholders to offload more assets.

In commodity markets, oil prices stabilised after heavy falls on Monday, with West Texas Intermediate up 0.5% at $37.01 and Brent crude 0.6% higher at $36.85.

There are no major UK data releases due, but in US, the goods trade balance is at 1330 GMT, while S&P/Case-Shiller house prices are at 1400 GMT and consumer confidence is at 1500 GMT.