European stocks rebound as corporate optimism lifts mood ahead of rate decisions
EWG•The STOXX 600 rose 0.77% to 640.66 on Monday, as upbeat company updates lifted European shares ahead of central bank decisions. Computacenter gained more than 13%, while Galp fell 10.8% after talks to combine businesses with Moeve collapsed.
1. Shares recover
The pan-European STOXX 600 closed 0.77% higher at 640.66 points. Computacenter rose more than 13% after forecasting annual profit above market expectations for the fourth time this year, and Genmab gained 12% after reporting encouraging follow-up data from a mid-stage trial of an experimental colorectal cancer treatment.
2. Economic and sector moves
A survey by the Ifo institute showed German business morale improved more than expected in October, and Germany's benchmark index gained 0.9%. Most major STOXX sectors rose, led by defence stocks, up 2.6%; travel and leisure stocks gained 1.9%, while energy fell 0.2%.
3. Rate decisions ahead
Investors were looking to decisions from the European Central Bank and US Federal Reserve later in the week. A pause is widely anticipated at the ECB's Thursday meeting; economists polled expect a quarter-point rate hike in December. Galp fell 10.8% after talks with Moeve to combine refining, chemicals and fuel retail businesses collapsed.
