UPDATE 3-European shares rebound on strong earnings, M&A speculation boosts Hugo Boss

  • Reuters
  • Stock Market News
UPDATE 3-European shares rebound on strong earnings, M&A speculation boosts Hugo Boss
Credit: © Reuters.

* ASML jumps after forecast raise

* Roche rally on results boost healthcare sector

* Juventus slides on Super League doubts (Updates to close)

By Sruthi Shankar and Susan Mathew

April 21 (Reuters) - European stocks bounced back on Wednesday after their worst sell-off this year as optimism about a strong earnings season countered worries about a rapid rise in COVID-19 cases in some countries.

The pan-European STOXX 600 index .STOXX rose 0.7% after a blistering seven-week rally ran into a bout of profit-taking on Tuesday, when it fell 1.9%.

Healthcare stocks .SXDP gave the STOXX 600 its biggest boost, with Swiss drugmaker Roche ROG.S jumping 3% after predicting a surge in demand for its drugs for the remainder of 2021. equipment maker ASML ASML.AS jumped 4.1% to lift tech stocks .SX8P after it raised its full-year sales forecast, citing strong demand amid a global computer chip shortage. rival ASM International ASMI.AS rose 1.2% on forecasting a rise in second-quarter orders. company earnings are expected to rise a record 61% in the first quarter of 2021, based on Refinitiv IBES data, placing Europe on course for a rare outperformance versus corporate America. markets) remains all-too-aware that earnings season provides the potential for some more downside as companies find themselves struggling to spin a positive case to justify further appreciation in their stock prices," said Chris Beauchamp, chief market analyst at IG.

With global equities trading at all-time highs and earnings expectations surging as vaccination drives and stimulus programmes support global recovery, concerns about stretched valuations remain.

On Wednesday, the European Union crossed one its last major hurdles to launch a 750 billion euro ($900 billion) recovery fund. other risks such as inflation and a stock market correction are starting to become more dominant than the pandemic, a top official at Norway's $1.3 trillion wealth fund said. fashion house Hugo Boss BOSSn.DE jumped 6.7% to a one-year high, with traders citing a media report of takeover interest in the company, including from French luxury goods maker LVMH LVMH.PA . world's second-largest brewer Heineken NV HEIN.AS and French luxury goods group Kering PRTP.PA were among other stocks to rally after upbeat results. decliners, Italian football club Juventus JUVE.MI slumped 13.7% after breakaway European Super League founder and Juventus chairman Andrea Agnelli said the league can no longer go ahead after six English clubs withdrew. Thursday, the European Central Bank's meets but no policy changes are expected to be made.

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