China reprieve lifts European shares, Adidas disappoints

On Thursday European shares rose for a second day, as investors took heart from a stronger-than-expected rebound in Chinese exports and steadying of the yuan currency after a week of turmoil centered around a renewed escalation of U.S.-China trade tensions.

Latest earnings showed disappointing second-quarter sales from German sportswear company Adidas (DE:ADSGn), sending its shares down 1.5%, while Thyssenkrupp (DE:TKAG) gained 2% in the face of a fourth profit-warning that traders said was already largely priced in. Down as much as 5% in a three-day rout that began late last week, the pan-European STOXX 600 index (STOXX) was up 0.8% on the day by 0714 GMT, adding to a minimal rise on Wednesday and with the tech sector (SX8P) leading gains.

July exports in China rose 3.3% from a year earlier, the fastest since March, overturning analyst forecasts for a 2.0% drop, as data showed. Imports fell almost 6% although that was not as bad as a consensus forecast for an 8.3% drop.

The yuan recovered some ground against the dollar, although the PBOC set its official midpoint below the seven to the dollar threshold.

The dollar edged lower across the board on Thursday, as risk sentiment stabilized after resilient Chinese trade data and Beijing's efforts to slow a slide in the value of the renminbi encouraged investors to buy riskier currencies.

This week, New Zealand joined India and Thailand in cutting interest rates, with market expectations growing that other major central banks will participate in further easing monetary policy.