European Stocks Rise as Deflation News Seen as Central Bank Call to Arms

European stock indices rebound from three-week lows, extending early gains as news of the first annual decline in euro zone consumer prices for more than five years bolsters expectations of new European Central Bank stimuli. In London food retailer Sainsbury provides a booster for its rivals with better than expected quarterly sales, before fears about a testing outlook send its own shares lower. And online fashion retailer boohoo.com plunges after warning of a profit shortfall after discounting in the sector amid warm fall weather crimped its own sales growth.