Riding on Nestle, Airbus and AstraZeneca, European stocks touches 3 months highs

Optimism about U.S.-China trade talks, strong results from Nestle, AstraZeneca and Airbus helped European shares extend their winning streak to hit their highest in three months on Thursday.

The pan-European STOXX 600 was up 0.5 per cent at 0840 GMT, with Paris' CAC 40 up 0.7 per cent, and London's FTSE 100 up 0.3 per cent. Frankfurt's trade-sensitive DAX was up 0.4 per cent, as investors breathed relief that the euro zone's largest economy escaped recession towards the end of last year. Euro-zone GDP data will be released at 0900 GMT.

The pan-European index was on track for its best weekly performance since early November. European industrial and consumer staple heavyweights stole the show on Thursday: Airbus delivered better-than-expected results, taking some of the stings away from the news that Europe's largest aerospace group has abandoned its flagship A380 programme. Its shares jumped 5 per cent to levels just shy of its record set last July.

AstraZeneca's fourth-quarter topped sales forecasts and the British drugmaker forecast another year of growth, sending its shares up more than 4 per cent. They were on track for their best day since July last year. Nestle, the world's top food and drinks maker, soared to all-time highs after giving an upbeat outlook for the year ahead on an improving outlook in China and North America. (Reporting by Josephine Mason; editing by Danilo Masoni)