* KKR explores higher bid for Telecom Italia -reports
* Travel stocks extend declines to seventh session
* Weakening German business morale pushes DAX lower
Nov 24 (Reuters) - European shares ended a four-day losing
streak on Wednesday with shares of Telecom Italia leading gains,
but fears around Europe's worsening COVID-19 situation and the
prospect of severe restrictions restrained the market.
The pan-European STOXX 600 index climbed 0.1% after
recording its worst session in nearly two months on Tuesday amid
a continental resurgence in coronavirus cases and fears of
rising interest rates.
Telecom Italia surged 15.6%, lifting the European
telecoms sector by 1.2%, following news reports that KKR
is considering boosting its offer for the company after top
investor Vivendi called the initial one too low.
European stocks are on course for weekly losses as the
return of COVID-19 curbs, rate hike and inflation concerns
sparked fears of a weaker economic growth outlook.
Travel stocks slid by over 1.0% on Wednesday,
extending their declines to a seventh straight day.
"People are waiting to see what impact COVID measures will
have on economic growth in Q4 and next year. If the situation
deteriorates and we see more aggressive responses from
governments, there will be concerns over the overall European
economic growth profile," said Nick Nelson, head of European
equity strategy at UBS.
Indeed, spiking coronavirus cases and supply chain
constraints clouded Germany's growth outlook as the Ifo
institute said business morale deteriorated for the fifth month
running in November, pushing the country's benchmark index
"By far the biggest fall was in the services sector, which
shows that the hospitality business was struggling in the first
half of the month...Even when permitted to go to the shops and
restaurants, consumers were increasingly choosing to avoid
crowded spaces," said Andrew Kenningham, chief Europe economist
at Capital Economics.
Meanwhile, German Social Democrat Olaf Scholz said he had
reached a deal with the Free Democrats and Greens to form a new
coalition government that will end the Angela Merkel era.
Higher copper prices driven by easing fears of Chinese
demand lifted miners by 0.2%, while energy stocks
rose 0.7% after crude prices inched higher.
Shares in British inspection and product testing company
Intertek rose over 6% after reporting strong growth in
German medical equipment maker Draegerwerk
plunged 12.0% after saying it expected sales and earnings to
drop next year, citing weak demand for pandemic-related
(Reporting by Anisha Sircar and Shreyashi Sanyal in Bengaluru;
Editing by Shailesh Kuber and Mark Heinrich)