European shares bounce

European shares rose on Thursday as daily coronavirus death tolls in Spain and Italy eased, while a defiant statement on the crisis from two of the continent's big budget airlines helped battered travel stocks recover.

The pan-European STOXX 600 index added 1%, climbing for the sixth time in seven days as the latest numbers from two outbreak hot spots in Europe added to signs the pandemic was plateauing.

Early gains were driven by technology, autos and financial stocks, while the travel and leisure index was boosted by a 6.2% jump for budget carrier easyJet as it said it had access to enough cash reserves to survive a lengthy fleet grounding.

Bigger rival Ryanair had on Wednesday said it was steeling itself for an airline price war that it expected to win once travel curbs are lifted and passengers flock back to tourist destinations.

"Today's moves are mostly driven by hope and markets are eager to hear any news about lockdown exit strategies and the re-opening of economies," said Stefan Koopman, senior market economist at Rabobank.

The benchmark STOXX 600 has risen to near one-month highs since hitting a trough in March as central banks announced a raft of stimulus, but analysts have warned about another sell-off with economic damage piling up and GDP estimates slashed.

In Europe, analysts expect a corporate recession to deepen in 2020, with earnings for STOXX 600 companies falling 22% in the first quarter and 34.2% in the second, according to IBES data from Refinitiv.

French state-controlled utility EDF fell 4.7% after it forecast a sharp drop in its domestic nuclear power output due to a fall in business activity caused by the health crisis. But German online fashion retailer Zalando jumped 5.3% as it said it was optimistic about the second quarter after sales picked up in April.