STOXX 600 set for best week in more than 3 months on US rate cut hopes
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Bayer up on victory in legal battle against Roundup cancer claims
UBS to liquidate $2 bln real estate fund, shares up
STOXX 600 up 0.3%
Updated at 0835 GMT
By Pranav Kashyap
Aug 16 (Reuters) -European shares gained for the fourth straight session on Friday, as upbeat risk sentiment prevailed across global markets following a strong U.S. retail sales data.
The pan-European STOXX 600 .STOXX was up 0.3% at two-week highs. The benchmark index was on track for its best week since May 6.
London's FTSE 100 .FTSE ticked 0.2% lower after British retail sales rose 0.5% in July, in line with forecasts.
Almost all regional bourses were trading in the green, with Italy's FTSE MIB .FTMIB outperforming peers with a 2.1% gain.
The automobile sector .SXAP rose 1.3% boosted by gains in Ferrari RACE.MI which rose 2.7% and Stellantis STLAM.MI that gained 3% despite the European-American automaker being sued by shareholders in the U.S. who said the firm defrauded them by concealing rising inventories and other weaknesses.
U.S. retail data overnight signalled resilient consumer spending, allaying fears of an imminent recession in the world's largest economy.
Investor sentiment stumbled in early August as a weak U.S. jobs report sparked fears of a looming recession and led to a global equity sell-off.
The STOXX 600 has since rebounded, erasing all losses as a series of positive U.S. economic data eased recession worries.
Markets will look forward to next week's Jackson Hole event in Wyoming, one of the premier global central bank gatherings where Federal Reserve Chair Jerome Powell is expected to speak.
"Next week is going to be a big week... there's always a lot of expectation going into Jackson Hole," Julien Lafargue, Chief Market Strategist at Barclays Private Bank said.
"Unless data comes in that says otherwise, it looks like Jackson Hole will be an opportunity for Powell to preempt a 25 basis point cut in September."
The tech sector .SX8P which was one of the most affected by the recent rout, was set for its longest winning streak in more than six months.
Despite likely volatility, there could be a window of opportunity for European equities as investors hesitate to increase U.S. stock exposure given uncertainly over upcoming election, Barclays' Lafargue said.
Bayer BAYGn.DE jumped 9% after it won a legal victory in its fight to limit liability from claims that its Roundup weed killer causes cancer.
UBS UBSG.S gained 1.3% after the Swiss bank said it will liquidate a $2 billion real estate fund it acquired when it bought Credit Suisse.
Reporting by Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala
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