Britain39;s Next shines on profit forecast hike
Adidas, Puma slip after JD Sports warns on profit
Euro zone business activity shrank again in Dec
Inflation up in German states, France in Dec

Jan 4 Reuters European shares bounced back on Thursday, boosted by healthcare and energy stocks, with adamant investors assessing a slew of economic data for any signs that the European Central Bank could loosen monetary policy sooner than expected this year.

The panEuropean STOXX 600 was up 0.4 by 0917 GMT, after falling for two straight days and touching a threeweek low in the previous session.

Sentiment was also boosted by data showing China39;s services activity expanded at the fastest pace in five months.

There is a lot of risk appetite left for European equities and this rebound we39;re seeing could last a little bit longer, said Anthi Tsouvali, multiasset strategist at State Street Global Markets.

All eyes are on whether the previous year39;s rally, broadly built on the back of escalating bets of interest rate cuts, will extend into 2024. However, that has also made stocks overvalued, say analysts, capping their potential for further sharp gains.

European equities would lag other markets also because of their cyclicality and risks like higherforlonger rates, dependency on manufacturing, and ongoing geopolitical risks, Tsouvali added.

Meanwhile, data showing rising inflation in German states and France is complicating the ECB39;s job at a time when the bloc39;s…