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

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

(Reuters) – European shares rose on Tuesday after their biggest fall in two months on easing worries about the spillover from the crisis at China’s Evergrande, although gains were capped by fears major central banks could announce a tapering in stimulus.

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

Universal Music Group, the business behind singers such as Lady Gaga, Taylor Swift and The Weeknd, soared 38.1% in its first day of trading. The company was valued at around 33.5 billion euros ($39.30 billion) ahead of its debut.

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

U.S. stock futures also bounced a day after global markets were roiled by concerns the potential default by Evergrande, the world’s biggest property developer, could hurt China’s real estate sector, as well as banks and the economy. [MKTS/GLOB]

Evergrande, struggling for cash, owes $305 billion.

Investor attention this week is also on policy meetings at a slate of central banks, including the U.S. Federal Reserve, with expectations running high for some of them to indicate they were ready to lower the pandemic-era stimulus on signs inflation was running persistently high.

Britain’s National Express jumped 7.3% after rival Stagecoach Group said it was in talks with National Express about a possible all-share merger.

Stagecoach’s shares surged 16%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.