LONDON Nov 19 European equities rebounded from
multi-month lows on Monday to post their biggest daily gain in
10 weeks thanks to signs of progress in U.S. talks to avoid a
Leading Democratic and Republican lawmakers voiced
confidence over the weekend that a deal would be reached to
avoid the so-called "fiscal cliff" of some $600 billion of tax
hikes and spending cuts due to take effect in January.
An unexpected rise in U.S. existing home sales for October
added to the brighter sentiment towards the world's biggest
economy on Monday, which has become a significant source of
growth for European companies as their domestic region flirts
The FTSEurofirst 300 index provisionally closed up 2.3
percent to 1,091.49 points, while the EuroSTOXX 50 rose
2.8 percent to 2,496.37 points -- both posting their
biggest one-day gain since early September and rebounding from
"That (progress in negotiations) was the catalyst for the
short-term gain of the market," said Vincent Guenzi, chief
strategist at Cholet Dupont.
"That could help the market maybe gain 1 or 2 percent more,
but to really have the end of the downtrend of the last weeks,
we need something real."