European shares edged higher on Wednesday, after a four-day slump, as gains in technology stocks and encouraging China services sector data helped offset more worries around the US-China trade dispute.

The pan-European STOXX 600 index rose 0.2 per cent by 0812 GMT, after hitting a one-month low on Tuesday following US President Donald Trump's remarks that a trade agreement with China might have to wait until after the US presidential election in November 2020.

Trade-sensitive German shares, up about 0.2 per cent, also recovered from a 1-month low, with chipmakers including Infineon Technologies and STMicroelectronics, gaining after upbeat earnings forecast from US peer Microchip Technology.

Shares in Airbus rose 0.6 per cent after winning an order from US carrier United Airlines.

A big decliner was French telecom company Orange, sliding 3.9 per cent, after traders pointed to disappointment over the firm's dividend outlook even as it announced plans to carve out its mobile towers in most European countries where it is present.

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