European stocks set to rebound from sell-off

PARIS (BestGrowthStock) – European stocks were seen rebounding from nine-month lows on Wednesday, tracking Wall Street’s strong late rally off the session’s lows that helped the main U.S. indexes close largely unchanged.

But the tentative stock rebound could be limited by lingering fears that the euro zone debt crisis could slow the flow of credit and hit the banks.

Financial spreadbetters expect Britain’s FTSE 100 (.FTSE: ) to open 84 to 89 points higher, or as much as 1.8 percent, Germany’s DAX (.GDAXI: ) to open 86 to 91 points higher, or as much as 1.6 percent, and France’s CAC-40 (.FCHI: ) to open 71 to 76 points higher, or as much as 2.3 percent.

The euro lost ground on Wednesday, falling back toward a four-year low against the dollar and an 8-1/2-year trough against the yen, dragged lower by worries over the euro zone’s banking sector.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares has tumbled 15 percent over the past six weeks — with bourses in Southern Europe like Milan, Madrid, Lisbon and Athens already in bear territory — as investors rushed for safety on fears the Greek debt crisis could spread to other euro zone countries, spark a credit crunch and undermine the global economic recovery.

Late on Tuesday, Italy joined Europe’s push for fiscal austerity with 24 billion euros of deficit-reducing cuts that target public workers and local government.

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SANOFI-AVENTIS (SASY.PA: )

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(Reporting by Blaise Robinson)

European stocks set to rebound from sell-off