UPDATE 3-European shares rebound on strong earnings, M&A speculation boosts Hugo Boss

* ASML jumps after forecast raise
* Roche rally on results boost healthcare sector
* Juventus slides on Super League doubts

(Updates to close)
By Sruthi Shankar and Susan Mathew
April 21 (Reuters) - European stocks bounced back on
Wednesday after their worst sell-off this year as optimism about
a strong earnings season countered worries about a rapid rise in
COVID-19 cases in some countries.
The pan-European STOXX 600 index .STOXX rose 0.7% after a
blistering seven-week rally ran into a bout of profit-taking on
Tuesday, when it fell 1.9%.
Healthcare stocks .SXDP gave the STOXX 600 its biggest
boost, with Swiss drugmaker Roche ROG.S jumping 3% after
predicting a surge in demand for its drugs for the remainder of
2021. Semiconductor equipment maker ASML ASML.AS jumped 4.1% to
lift tech stocks .SX8P after it raised its full-year sales
forecast, citing strong demand amid a global computer chip
shortage. Smaller rival ASM International ASMI.AS rose 1.2% on
forecasting a rise in second-quarter orders. European company earnings are expected to rise a record 61%
in the first quarter of 2021, based on Refinitiv IBES data,
placing Europe on course for a rare outperformance versus
corporate America. "(But, markets) remains all-too-aware that earnings season
provides the potential for some more downside as companies find
themselves struggling to spin a positive case to justify further
appreciation in their stock prices," said Chris Beauchamp, chief
market analyst at IG.
With global equities trading at all-time highs and earnings
expectations surging as vaccination drives and stimulus
programmes support global recovery, concerns about stretched
valuations remain.
On Wednesday, the European Union crossed one its last major
hurdles to launch a 750 billion euro ($900 billion) recovery
fund. But, other risks such as inflation and a stock market
correction are starting to become more dominant than the
pandemic, a top official at Norway's $1.3 trillion wealth fund
said.
German fashion house Hugo Boss BOSSn.DE jumped 6.7% to a
one-year high, with traders citing a media report of takeover
interest in the company, including from French luxury goods
maker LVMH LVMH.PA . The world's second-largest brewer Heineken NV HEIN.AS and
French luxury goods group Kering PRTP.PA were among other
stocks to rally after upbeat results. Among decliners, Italian football club Juventus JUVE.MI
slumped 13.7% after breakaway European Super League founder and
Juventus chairman Andrea Agnelli said the league can no longer
go ahead after six English clubs withdrew. On Thursday, the European Central Bank's meets but no policy
changes are expected to be made.