UPDATE 1-Tech and bank stocks weigh as Europe attempts a rebound

European shares managed a tentative rebound on Wednesday, though big falls in technology after results from chipmaker STMicro, and banks after Deutsche Bank's update, kept the mood bearish despite strong results from Kering.

The pan-European STOXX 600 was up 0.2 per cent by 0858 GMT, lingering close to lows not seen since December 2016 after global markets took a new dive this week.

Weighing on risk appetite on Wednesday was the euro zone's manufacturing and services PMI reading showing euro zone business growth lost far more momentum than expected, dragged down by waning orders.

Germany's DAX hovered flat while Italy's FTSE MIB fell 0.1 per cent.

"Sickly stock markets and lingering challenges are apparent in Europe," said Raymond James' European strategist Chris Bailey in a note, adding "so far the corporate earnings season is offering little in the way of insight."

The banking sector, the worst-performing in Europe so far this year, lost 0.5 per cent with Deutsche Bank shares down 3.9 per cent after a steep decline in third-quarter profit.

"In Corporate & Investment Bank the bank is still losing market share (which we fear will continue), while private and commercial bank profitability has disappointed on higher investment spend," analysts at Citi said.

The tech sector slid 1.2 per cent with Franco-Italian chipmaker STMicroelectronics down 9 per cent after its third-quarter update slightly missed expectations.

"The company has not provided any commentary on demand trends, but the guidance would suggest some small signs of weakness," said Liberum analysts.

Apple chip supplier AMS extended Tuesday's spectacular fall of 26 per cent, falling 9.1 per cent in early deals the day after it disappointed investors with its fourth-quarter forecast.

Chipmaker Infineon fell 4.8 per cent while Siltronic tumbled 7.2 per cent.

Among the session's early winners were luxury stocks, taking back some ground after being recently hit by worries over a growth slowdown in China.

Franc's Kering jumped more than 7 per cent after its results showed demand for Gucci handbags proved more resilient than expected.

"The 35 per cent organic growth at Gucci (consensus 28%) and management's confidence there has not been a slowdown in China so far confirmed one of the key features of this cycle - that the strong brands are still winning," wrote Berenberg analysts.

Another strong gainer after results was France's BIC which jumped 10 per cent after the maker of ballpoint pens, razors and lighters reported a stronger than expected rebound in third-quarter sales.

Boliden shares tumbled 13.9 per cent, the worst STOXX fallers after the Swedish mining company said lower metal prices dented third-quarter profits.