European stocks rose yesterday with Italy setting the pace after a big upward revision in first-quarter economic growth.

The pan-European STOXX 600 index edged up 0.3 per cent, led higher by industrials and consumer staples companies. Bank shares lagged slightly after two major US lenders, JPMorgan and Bank of America, warned on Wednesday that low market volatility would crimp trading revenue.

Italy’s FTSE MIB index was the top gaining national market, up 0.6 per cent and fractionally outperforming France’s CAC 40.

Italy’s national statistics bureau said strong domestic demand helped the economy grow 0.4 per cent in the first quarter, twice as much as indicated by preliminary data issued last month.

The euro zone economy as a whole grew 0.5 per cent in the period and, in a further sign of recovery, data yesterday showed manufacturing grew in May at its fastest rate in six years.

Stronger euro zone data has helped push the euro higher against the dollar of late, contributing to the US currency’s worst fortnight since March 2016.

However, the greenback rose 0.4 per cent yesterday, hitting session highs after data showed the private sector added 253,000 jobs in May, above economists’ forecasts.

Britain’s pound, on a rollercoaster ride this week as polls have sent conflicting signals about the outcome of next week’s election, fell 0.2 per cent to $1.2866 after another poll showed the Theresa May’s Conservatives just three percentage points ahead of the Labour opposition.

The euro was down 0.3 per cent at $1.1209, having fallen as low as $1.1201 after the ADP data. The Japanese yen was down 0.5 per cent to 111.32 per dollar.

Oil prices initially rose, lifting off Wednesday’s three-week lows, after data showing a big drop in US crude stocks last week.

Brent crude, the international benchmark for the oil market, was down 13 cents at $50.63 a barrel.