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European Shares Rebound on Strong Earnings

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European stocks bounced back on Wednesday after their worst selloff this year as optimism about a strong earnings season countered worries about a rapid rise in COVID19 cases in some countries.

Tech stocks were the top gainers, up 1.3, with semiconductor equipment maker ASML jumping 4.7 after it raised its fullyear sales forecast, citing strong demand amid a global computer chip shortage.

Smaller rival ASM International rose 0.6 on forecasting a rise in secondquarter orders.

German fashion house Hugo Boss jumped 7.5 to a oneyear high, with traders citing a media report of takeover interest in the company, including from French luxury goods maker LVMH.

The panEuropean STOXX 600 index rose 0.4 after a blistering sevenweek rally ran into a bout of profittaking on Tuesday, when it fell 1.9.

Some analysts pointed to concerns over the strength of a global economic recovery after Indias mounting coronavirus crisis and a global spike in COVID19 cases.

While the UK and the US may be moving towards reopening, its not necessarily a straight line of recovery, said Joshua Mahony, senior market analyst at IG. Whats been happening in Brazil and India highlights the fact the virus is a massive issue.

There were concerns about stretched valuations, with global equities trading at alltime highs and earnings expectations surging as vaccination drives and stimulus programmes support global recovery.

European earnings are expected to rise a record 61 in the first quarter of 2021,…

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