European stocks rebound at end of volatile week

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 11, 2021.REUTERS/Staff

(Reuters) – European shares rose on Friday, as investors picked up beaten down stocks after rising inflation worries led to sharp losses earlier this week.

The pan-European STOXX 600 index rose 0.6% by 0718 GMT, with travel and leisure and retail stocks leading the gains. The benchmark was still on course for a 1% weekly drop, its worst since late February.

Global markets were rattled this week after a rally in commodity prices as well as quickening U.S. inflation raised fears about interest rate hikes.

Italy’s Banco BPM rose 2.2% After Deutsche Bank upgraded the stock to “buy”, saying the lender’s “speculative appeal” could increase in the next few months.

French food group Danone slipped 1.8% after Goldman Sachs downgraded the stock to “sell”, saying weaker demographic trends, particularly in China, will weigh on its specialised nutrition business.

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