August was a difficult month for European investors, with the pan-European
index falling 2.6%, but the new month has started with a more positive leaning, helped by a pleasant surprise from China.A private-sector survey, released earlier Friday, showed thatin the world's second-largest economy, and a major export market for Europe’s largest companies, unexpectedly grew in August.
This has helped spur some optimism that the sluggish post-COVID economic recovery of Asia’s largest economy is gathering pace, although this must be tempered by the still difficult conditions in China’s important property sector. Additionally, the People’s Bank of China said on Friday that it will cut the amount of foreign exchange that is required to be held by banks, as it attempts to support the country’s economic recovery.