European markets rebound from \\\'gruesome\\\' week

LONDON, July 14 (AFP): European equities rebounded on Monday after a torrid week, with London boosted by Shire Pharmaceuticals' backing of a takeover by US giant AbbVie, while the aviation sector flew into focus as well.

Investors were also eyeing US bank results and testimony this week from the head of the Federal Reserve about the state of the US economy and the likely timeline for raising interest rates.

In late morning deals, London's FTSE 100 added 0.67 per cent to 6,734.73 points, Frankfurt's DAX 30 gained 0.68 per cent to 9,730.72 points and the Paris CAC 40 won 0.46 per cent to 4,336.45.

Milan rose 0.91 per cent and Madrid increased by 0.77 per cent, while Lisbon stocks rallied 1.02 per cent as worries eased over the plight of troubled lender Banco Espirito Santo (BES).

Europeans markets had fallen heavily last week as troubles at Portugal's largest listed lender, BES, raised fears of a possible default and a return to the dark days of the eurozone debt crisis.

However, equities clawed back some ground on Friday, and recovered further on Monday as BES began the formation of a new management team.

"After a pretty gruesome week which saw the major European indices touch levels not seen for a couple of months, traders have taken the weekend to calm down and decided that the recent woes of bad economic data and the flaring up of the eurozone crisis isn't a sign of the long-awaited correction," said Capital Spreads dealer Jonathan Sudaria.