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Europe: Shares rebound helped by financials; WPP down

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[MILAN] European shares rebounded in morning trading on Tuesday following a late rally in Chinese stocks, although investors were likely to remain cautious due to worries over new US tariffs.

Financials were the biggest gainers, supported by strength among some Italian banks after top figures from the government appeared to play down the chances that the country's 2019 budget would break European Union spending rules.

Their gains helped lift the pan-European STOXX 600 index 0.16 per cent by 0722 GMT, while other European benchmarks were also slightly higher. The FSTE added 0.12 per cent.

Among banks, Italy's UBI Banca led the gainers, rising 4.3 per cent. Danske Bank's woes however weighed on its shares, which were down more than 4 per cent following a report suggesting its Estonian branch handled US$30 billion of non-residents' money in 2013.

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WPP was the biggest STOXX faller, down 7.3 per cent, after the British advertising group posted lower operating margins in the first half, although a rise in sales helped it nudge its full-year net sales outlook higher.

Scor rose 7.3 per cent after the French re-insurer rejected a friendly takeover offer by Covea.

REUTERS