European stocks closed higher on Thursday amid stabilizing bond yields and better than expected Chinese export data.
The pan-European Stoxx 600 was up 1.4% at the closing bell, with China-exposed basic resources stocks leading the gains with a 2.3% climb.
The Stoxx 600 gain marked the best days of gains in almost 2 months.
Meanwhile, a sharp decline in bond yields stabilized late on Wednesday's session to temper concerns over slowing economic growth. The sharp rally in fixed income caused a slide in equity markets in the previous session with investors fleeing to safe-haven assets.
Investors are also monitoring the yuan, after China's central bank set the official reference rate for the Chinese currency at 7.0039 yuan per dollar on Thursday — the weakest level since April 21, 2008.
Stocks on Wall Street were trading higher on Thursday, with investor optimism lifted by the yield rebound and China's positive trade data.
Back in Europe, earnings were also in focus. German submarines-to-elevators giant Thyssenkrupp posted a net loss of 94 million euros ($105.37 million) for the quarter and posted its fourth profit warning under current boss Guido Kerkhoff. The company's stock gained 4.3%, however, as markets had apparently priced in the weak results.
Sportswear giant Adidas posted a second-quarter net profit of 531 million euros and backed its 2019 guidance, but reported disappointing second-quarter sales. Adidas shares were down 2% at the end of the session.
Deutsche Telekom reported an increase of 7.1% for core profits, in line with expectations, and shares of Europe's largest telecommunications provider slipped 0.5% on the results.
British telecommunications provider BT saw its stock fall 5.8% to second bottom of the Stoxx 600 after HSBC cut its price target, outpaced only by German lighting company Osram, which tumbled 7% after one of its top investors, Allianz Global Investors, rejected a takeover bid.
At the top of the European blue chip index, British fund supermarket Hargreaves Lansdown climbed almost 12% after it overcame adverse publicity surrounding its promotion of a now-suspended fund from ailing star manager Neil Woodford to increase total full-year assets by 8.4%.
Carlsberg shares rose by 11% after the Danish beer company upgraded its 2019 earnings expectations.