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

September 21, 2021

(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 STOXX 600 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 Germany’s DAX 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%.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur)

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