European shares rebounded from six-months lows on Friday, ending a tumultuous week on a positive note as hopes of fiscal stimulus from Germany lifted sentiment and sparked a rally in the battered banks sector, helping them post their best day in 4-1/2 months.
European shares hit six-month lows in a volatile session on Thursday, with London stocks losing more than 1%, as China warned of retaliation against U.S. tariffs, heightening fears of the continued impact of their trade war on global growth.
European stocks tumbled to a six-month low on Wednesday, as an inversion in the U.S. yield curve following bleak data out of major economies including Germany and China pointed to a looming recession. | Video
European shares staged a comeback from early losses on Tuesday as growth sectors led the charge, after Washington's move to delay tariffs on some Chinese goods provided a lift to battered global sentiment.
European shares slid on Friday with Italian stocks 2.5% lower on political uncertainty, while comments by U.S. President Donald Trump that he was not going to make a trade deal with China also weighed on sentiment.
European shares had their best day in almost two months on Thursday as upbeat trade data from China and a steadying of its currency helped to calm some fears of recession and a further escalation in Sino-U.S. trade tensions. | Video
European shares rose on Wednesday, breaking a three-day losing streak on euphoria over a multi-billion dollar German chemical deal but gave up some gains after Wall Street opened sharply lower on recession worries. | Video