European shares rise slightly thanks to the rise of banking and auto shares

European shares opened slightly higher on Wednesday, boosted by a rally in bank and auto stocks, but negative data raised fears of slowing economic growth and capped gains.

The pan-European STOXX 600 index started the month higher, adding 0.3% by 0716 GMT, after closing down 0.7% on Tuesday, as the record rise in inflation raised fears of violent intervention by the central bank. The index lost 1.6 percent during the month of May.

Economists at Deutsche Bank now expect the European Central Bank to raise rates by 50 basis points in September as higher prices affect economic growth.

Auto stocks rose about 1 percent, with the banking sector the biggest supporter of the STOXX 600, with the sector gaining 0.6 percent.

Shares of British shoe company Dr. Martins rose 19 percent after it expected greater growth in its annual revenue as a result of rising prices to keep pace with inflation and increasing sales.

Shares in DWS, the asset manager of Deutsche Bank, fell 6.9 percent after the chief executive said he would step down next week as the company faces accusations of misleading investors about “green” investments.