European Shares Set to Rise at Volatile End of September

European shares rose, extending gains after a heavy sell-off earlier this week as persistent concerns about slowing global economic growth and rising inflation put major markets on a monthly decline path.

The pan-European STOXX 600 index rose 0.6 percent, led by defensive sectors such as real estate, healthcare, and food and beverages, while mining stocks rebounded from sharp declines fueled by concerns about China’s economy.

The benchmark index is on track to end September with a loss of 2.7 percent after a seven-month winning streak, as a rise in government bond yields pushed investors into high-growth sectors.

Sweden’s H&M rose 1.9 percent after it reported a jump in pre-tax profit that beat expectations as shoppers returned to stores, while Diageo liquor stock gained 2 percent after the company expected operating profit to boost as consumers preferred luxury brands.

British online fashion retailer Boho plunged 10.3 percent as it warned that inflated freight rates and higher wages for its distribution center staff would affect full-year profit margins.