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European shares bounce after worst session in two months; UMG soars in debut By Reuters


© Reuters.

(Reuters.) European shares rose after a sharp fall over the past two months. This was due to easing concerns regarding the impact of the Chinese crisis at Evergrande. But gains were dampened by the possibility that major central banks might announce a reduction in their stimulus.

The pan-European was up 0.6% by 0704 GMT after sinking to a two-month low in the previous session.

The Universal Music Group, which is behind the singers Lady Gaga and Taylor Swift, saw its trading volume rise 38.1% on the first day. It was worth around 33.5 billion euro ($39.30 million) before its debut.

Media, mining and energy stocks led early gains, while rebounded from its lowest level since late-July.

U.S. stock markets also rebounded one day after the global market turmoil over concerns Evergrande’s possible default could harm China’s economy and real estate sectors. [MKTS/GLOB]

Evergrande, struggling for cash, owes $305 billion.

Investor attention is now on policy meetings at various central banks including the U.S. Federal Reserve. There are high expectations that they will signal their readiness to reduce the current pandemic-era stimulus, which was causing persistent high inflation.

The shares of British National Express rose 7.3% following the announcement by rival Stagecoach Group that they were in negotiations with National Express to merge all-share.

Stagecoach shares surged by 16%.

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