European shares rebound from three-week lows; healthcare, energy lead gains

(Reuters) – European shares bounced back on Thursday, powered by healthcare and energy stocks, with investors looking forward to a slew of economic data for any signs that major central banks could loosen monetary policy sooner than expected this year.

The pan-European was up 0.5% by 0804 GMT, having dropped to a three-week low in the previous session.

Energy was the top sector gainer, up 1.3%, followed by a 0.8% rise in healthcare.

Sentiment was also boosted by data showing China’s services activity expanded at the fastest pace in five months.

British clothing retailer Next jumped 5% to top the STOXX 600 after raising profit forecast for the year to end-January 2024, while Evotec slumped 16% after the German biotechnology firm announced a “surprising” departure of its long-term CEO.

Investors keenly awaited euro zone PMI and Germany’s consumer inflation readings, a day after the U.S. Federal Reserve’s December policy meeting minutes showed a growing sense that inflation is under control and rising concerns about economic risks from a restrictive monetary policy.

Meanwhile, fresh data showed French December consumer prices rose in line with expectations.