Europe Shares Close Higher as Risk-On Rally Continues

The risk-on rally continued on Wednesday, with European shares extending gains to close higher, boosted by upbeat Chinese export data.


"The Fed keeping the door open for QE, the ECB cutting interest rates and the RBA also cutting rates to record lows has fueled this rally, with traders reassured that central bank activisms is here to stick around for some time, attracting investors to building risk exposure," ETX Capital's Ishaq Siddiqi said in a research note.

(Read More: Market Gains Could Keep on Coming After Dow 15,000)

The FTSEurofirst 300 Index closed provisionally 0.7 percent higher at 1,229.82, its highest closing level since mid-2008, after Chinese export data for April exceeded market forecasts. However, some experts questioned the accuracy of the data, after Beijing's recent acknowledgement of widespread overloading of exports.

(Read More: China's Trade Data: One for Global Economy Bulls?)

In economic releases, the Ifo World Economic Survey, showed the economic outlook in the euro area worsened in the second quarter, although expectations for the next six months have brightened.