Europe: Equities on course to end volatile September on bright note

[BENGALURU] European stocks rose on Thursday, extending gains after a bruising sell-off earlier this week as lingering worries about slowing global economic growth and higher inflation put the main markets on course for a monthly drop.

The pan-regional Stoxx 600 index rose 0.6 per cent by 7.18am GMT, led by defensive sectors such as real estate, healthcare and food and beverage, while miners rebounded from sharp declines fuelled by worries about China's economy.

The benchmark is on track to end September with losses of 2.7 per cent after a seven-month winning streak, as a surge in government bond yields drove investors out of high-growth sectors.

Among stocks, Sweden's H&M rose 1.9 per cent after it reported a bigger-than-expected jump in quarterly pretax profit as shoppers returned to stores, while spirits maker Diageo gained 2 per cent after it forecast a boost to operating margins as people opt for premium brands.

British online fashion retailer Boohoo tumbled 10.3 per cent as it warned that freight inflation and higher wages for its distribution centre workers would impact full-year profit margins.

REUTERS