Europe open: Shares make strong start as Evergrande concerns ease

European stocks pushed ahead at the opening again on Thursday as worries over property developer China Evergrande’s debt eased and investors eyed business surveys along with a rate decision from the Bank of England.

The pan-European STOXX 600 index gained 0.86% in early trade after Asian stocks rose on the back of a 30% spike in Evergrande shares in Hong Kong.

Evergrande’s chairman Hui Ka Yan moved to reassure investors after the company’s unit said it had “resolved” a coupon payment on an onshore bond. He said the company, saddled with more than $300bn in debt, would make it a top priority to help retail investors redeem their investment products.

The company faces $83.5m in dollar-bond interest payments due Thursday on a $2bn offshore bond. A $47.5m -bond interest payment is also due next week.

Early reading of IHS Markit’s September business surveys are due later in the day as investors look for indications of the pace of recovery from the Covid-19 crisis.

In equity news UK parcel and letter carrier Royal Mail gained after it forecast a surge in first-half operating profit as the pandemic-led boom in online shopping drives letter volumes and package revenues.

French car parts company Faurecia to the top of the Stoxx with a 6.5% rise even as it lowered its main 2021 financial targets due to a sharp reduction in worldwide automotive production. Rival Valeo also gained almost 5%.