FTSE up 0.53%; DAX up 1.39%; CAC 40 up 1.16% (Il Sole 24 Ore Radiocor) - London, 22 Jul - European shares closed higher, rebounding from Friday's losses, as investors digested news that US president Joe Biden had dropped out of the presidential race and endorsed vice president Kamala Harris as the Democratic nominee.

The move was broadly expected after Biden's underwhelming debate performance against Donald Trump in June, and after polls recently showed the increasing likelihood of an election win by Trump in November.

Investors looked for fresh direction after the European Central Bank last week left interest rates unchanged and indicated that a rate hike in September is 'wide open'.

Traders are now awaiting earning reports from Europe's biggest banks this week as well as key data from the US including GDP figures on Thursday and the core personal consumption expenditures index, the Federal Reserve's favoured inflation measure, on Friday. The index is seen rising 0.1% in June, pulling the annual increase down a tick to 2.5%.

The London FTSE 100 closed up 0.53% at 8,198.78 points, the Frankfurt DAX added 1.39% at 18,417.94 points, the Paris CAC 40 rose 1.16% at 7,622.02 points, while in Milan the FTSE MIB gained 1.17% at 34,615.05 points, and in Madrid the IBEX 35 closed 0.73% higher at 11,168.33 points.

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(RADIOCOR) 22-07-24 18:03:48 (0522) 5 NNNN