MILAN/FRANFURT: European shares bounced back on Wednesday, on the eve of the European Central Bank's policy meeting, as AstraZeneca reversed declines after a report that it may resume its COVID-19 vaccine trial next week.
AstraZeneca Plc had to pause global trials of its experimental vaccine after an unexplained illness in a participant. But its shares rebounded from small declines earlier in the session to inch 0.5% higher after the Financial Times report.
"Given how brash the markets have been around any vaccine updates, this understanding that delays in the process aren't necessarily cause for concern is a surprising acknowledgement of nuance," said Connor Campbell, financial analyst at spread better Spreadex.
The pan-European STOXX 600 index rose 1.6%, with telecoms, insurers and technology stocks leading sectoral advances.
Travel and leisure stocks were the laggards with a 0.9% fall.
The British airline easyJet fell 2.1%, a day after reducing its flying schedule as frequent changes in government travel restrictions hit demand.
Fellow airlines Ryanair and IAG and cruise operator Carnival fell between 3.5% and 6%. The plane manufacturer Airbus fell 2% after deliveries slipped in August, slowing its recovery from a meltdown in demand induced by the coronavirus. The STOXX 600 index has been stuck in a tight range since June, but investors are looking to Thursday's ECB policy meeting as a possible catalyst.
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