European shares rebound on tech boost; FTSE slips on BoE inflation warning
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Germany faces snap elections
Rheinmetall jumps; bets on end to Germany debt brake
Italy's Banco BPM rises on offer for Anima Holding
Tech and miners lead rebound
STOXX 600 up 0.7%
Updated at 1650 GMT
By Shashwat Chauhan and Shubham Batra
Nov 7 (Reuters) -European stocks regained ground on Thursday, boosted by technology and resources shares, while Britain's FTSE 100 dipped after the Bank of England cut interest rates but projected higher inflation following the new government's first budget.
The pan-European STOXX 600 .STOXX closed 0.7% higher, powered by a 2.2% bounce in the tech sector .SX8P, recouping losses from the previous session. Autos .SXAP also added 2.2% after a more than 2% decline on Wednesday.
The basic resources index .SXPP supported gains, rising 3.9% for its best day in six weeks following a rebound in base metal prices. MET/L
The FTSE 100 was the only stock index among major European benchmarks that ended in the red, down 0.3%.
The BoE said the government's plans were likely to add almost half a percentage point to inflation at its peak in just over two years' time and cause it to take a year longer to return sustainably to the central bank's 2% target.
Investors will now shift their focus to the U.S. Federal Reserve's interest rate decision at 1900 GMT.
Europe's STOXX 600 gained as much as 1.9% in the previous session, tracking a surge on Wall Street after Donald Trump recaptured the U.S. presidency, although the index closed lower as investors assessed the likelihood of tariffs.
Among other movers on Thursday, ArcelorMittal MT.AS gained 6.5% after the world's second-largest steelmaker reported third-quarter core profit above market expectations.
Italy's third-largest lender Banco BPM BAMI.MI climbed 9% on plans to launch a bid for full control of asset manager Anima Holding ANIM.MI in a deal worth up to 1.6 billion euros ($1.7 billion). Shares of Anima jumped 11.1%.
Dutch fintech company Adyen ADYEN.AS slipped 3% after reporting third-quarter processed volume below market expectations, while British broadcaster ITV ITV.L lost 12.9% after posting a worse than expected fall in revenue in the nine-months ended Sept. 30.
Daimler Truck DTGGe.DE gained 3.1% after the truckmaker reported a marginally better than expected third-quarter core profit.
GERMANY FACES SNAP ELECTION
Germany's ruling coalition collapsed as Chancellor Olaf Scholz sacked his finance minister and paved the way for a snap election, triggering political chaos in Europe's largest economy. The German benchmark index .GDAXI was up 1.7%.
Arms group Rheinmetall RHMG.DE shares rose 9%, leading a rally in aerospace and defence stocks .SXPARO, on bets the election of Trump and the sacking of Germany's fiscally conservative finance minister could boost defence spending.
"This perceived shift in Germany's approach to fiscal constraints could fuel optimism about defense spending plans, with Rheinmetall seen as well-positioned to capture this," said Matthew Tuttle, CEO of Tuttle Capital Management.
Reporting by Shashwat Chauhan and Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips and Mark Potter
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