European shares rise as hopes of recovery remain strong

European shares opened higher on Wednesday, with hopes of a swift rebound from a coronavirus-led economic slump gaining traction even as curbs on movement in Beijing were put in place to contain a potential second wave of COVID-19 cases.

The pan-European STOXX 600 index rose 0.4 per cent, after logging its best day in nearly one month in the previous session on the US Federal Reserve's plan to start buying corporate bonds and a report the Trump administration was preparing a nearly $1 trillion infrastructure proposal.

Still, the advance was small as Beijing cancelled scores of domestic flights on Wednesday, ramping up attempts to contain a coronavirus outbreak that has triggered fears of renewed wider contagion.

Healthcare stocks remained in focus for investors, boosting the STOXX 600 by the most, while the European travel & leisure sub-index fell in early trading.

Among stocks, Lufthansa rose 4.1 per cent after German investor Heinz Hermann Thiele raised his stake in the company to more than 15 per cent from 10 per cent, he told newspaper Frankfurter Allgemeine Zeitung in an interview.