European shares bounced back on Wednesday as China's efforts to contain a coronavirus outbreak eased worries of a global pandemic, while the trade-sensitive German shares hit record levels.

By 0806 GMT, the pan-European STOXX 600 was up 0.2 per cent. Frankfurt's DAX outperformed regional peers, after a survey showed that a US-China trade truce had lifted German investor morale to its highest since 2015.

Britain's Berkeley Group Plc jumped 6 per cent to the top of the STOXX 600 index as the house-builder said it will increase its returns to shareholders by about 455 million pounds ($594.00 million) over the next two years.

Italy's FTMIB, however, lagged on reports that Luigi di Maio would step down as the leader of the co-ruling 5-Star Movement.

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