European investors felt more optimistic about China's virus outbreak on Wednesday (February 19).

Benchmark share indexes all made gains early in the day after Beijing said the number of new cases had dropped.

London's FTSE was the strongest performer, up around 1%.

Sentiment was also helped by media reports that China may soon provide more stimulus for its economy.

But the worries are far from over for big business.

Adidas just the latest to warn of a hit to sales as a result of store closures in China.

Shares in the sportswear maker still rose around 1% though, outperforming Germany's Dax index.

European stocks were also helped by a weaker euro.

More negative economic data out of Germany on Tuesday (February 18) sent it crashing close to three-year lows.

That makes European shares cheaper for global investors.

British Airways owner IAG was another to watch in early trade.

That after Qatar Airways said it was upping its stake in the firm to just over 25%.

IAG shares rose over 1% following the news.

But for all the bullish sentiment there was caution too, with traditional safe havens finding buyers.

Gold made gains above 1,600 dollars an ounce and benchmark government bonds held steady.

With data on the coronavirus outbreak so volatile, plenty of investors are still playing it safe.