Europe midday: Shares extend gains despite UK turmoil

(Sharecast News) - European shares were higher on Thursday, with the US-China summit and continuing UK political turmoil in focus.

The pan-regional Stoxx 600 index was up 0.59% at 615 BST with all major regional bourses higher. Britain's FTSE was up 0.43% after the release of GDP figures showing the economy grew by 0.3% in March, beating forecasts of a contraction of 0.2%. It also expanded by 0.6% in the January-March quarter, up from 0.2% in October-December.

Meanwhile, Prime Minister Keir Starmer was waiting to see if Health Secretary West Streeting would launch a leadership challenge.

"The UK bond market is remarkably stable considering the Prime Minister is expected to face a leadership challenge from both the right and the left of the Labour party in the coming hours," said XTB research director Kathleen Brooks.

"Bond yields are backing away from their highs, as UK GDP drives sentiment towards UK debt. The UK's 10-year yield remains above 5%, but it is lower by 6bps compared to Tuesday's high."

In Beijing, US President Donald Trump's was set to meet with fellow autocrat Xi Jinping, with the Iran war and trade on the table for talks.

On another busy day for corporate news, shares in 3i group plunged after it warned of slowing sales at discount retailer Action. Telefonica gained after results, while Legal & General shares were up after chief executive Antonio Simoes dismissed speculation surrounding a potential sale of the company.

Reporting by Frank Prenesti for Sharecast.com