European stocks hit 3-month highs on robust Chinese data

European stocks rose on Wednesday, to extend gains for the third straight day to a 3-month high, on strong investors sentiment following strong Chinese services data, and growing bets for the ECB to add extra monetary stimulus. 

The Stoxx Europe 600 index rose 1.3% as of 10:55 GMT, to the highest level since March 6 at 364.54 points, after it closed higher by 1.6% yesterday, as stocks linked to the economic cycle rallied.

The pan European index opened higher today, to extend its gains third straight day, and hit a 3-high high, with most European markets and sectors seeing green today.

The insurance sector topped the list of profitable sectors in Europe, with an increase of about 4%, thanks to the rise of the French insurance company AXA 5% after the disclosure of a plan to cut dividends by half due to the Corona virus crisis.

The insurance sector saw the largest gains in Europe today, rising more than 4%, as the French insurance company AXA shares rose 5% after the disclosure of a plan to cut dividends by half due to the coronavirus impact. 

Data showed that the Chinese service sector returned to a growth path in May, after 3 months of stagnation due to the coronavirus lockdown, which raised hopes about the recovery of the world's second largest economy.

The European Central Bank (ECB) will hold its monetary policy meeting on Thursday to discuss the latest developments in the euro zone economy, amid strong odds for the bank to expand the current  500 billion euros stimulus program for another month.

S&P 500 futures rose 0.5%, and hit a 3-month high, after the index closed higher by 0.8% yesterday at Wall Street, posting its third straight daily gain.

Back to Europe, the Euro Stoxx 50 index added 2.1%, France's CAC 40 jumped 1.9%, Germany's DAX added 2.3%, and the UK's FTSE 100 rose 1.2%.