European shares rise after a wave of selling

European shares rose on Wednesday with positive data on German market sentiment as investors watched what central banks would do to tighten monetary policy amid growing concerns about slowing economic growth.

The pan-European Stoxx 600 index rose 0.8 percent by 0714 GMT, supported by gains across all sectors. The index had fallen 1.1 percent in the previous session, giving up almost all the gains it made in Monday’s session.

Utility stocks led to the gains in Europe. Shares of energy company SSE jumped 4.4% after it announced an increase in annual profit by 23%.

A survey on Wednesday predicted that German consumer sentiment would rise in June after falling to a record low in May. But the survey also warned of the impact of inflation on curbing household spending.

Separate data from Germany showed that Europe’s largest economy grew in the first quarter, in line with expectations.

On Wednesday, investors are watching the minutes of the previous meeting of the US Central Bank to assess the way policymakers are inclined after sharp comments from the European Central President earlier this week.

Banking stocks, which benefit when interest rates rise, reached a one-month high and gave the Stoxx 600 the biggest boost.