Europe auto and parts sector gains from China steps to boost car sales

LONDON (Reuters) – Europe’s automobile and parts sector rose on Friday after China unveiled steps to boost car sales, as it tries to shore up a sluggish economy, while Volvo Cars results also supported the sector.

The STOXX 600 car and parts index rose 0.36%, and was set for a modest weekly gain of 0.2%.

Chinese authorities announced measures aimed at boosting sales of automobiles and electronics, but those steps fell short of impressing investors, who have been clamouring for stronger stimulus.

Sweden-based automaker Volvo Cars, majority-owned by China’s Geely Holding, gained the most after the car-maker forecast healthy demand for its vehicles despite pricing pressures. Its shares rose 6.8%.

France’s Renault RENA.PA rose 1.6%.

(Reporting by Joice Alves; Editing by Amanda Cooper)