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Aug 21 (Reuters) - European shares rebounded from the
previous session's sharp falls on Wednesday, with brokers
pointing to an Italian report on continuing merger talks between
Fiat Chrysler Automobiles FCHA.MI and Renault SA RENA.PA as
pushing car industry shares higher.
The pan-European STOXX 600 index .STOXX rose 0.5% at 0716
GMT, with Italy's FTSE MIB .FTMIB rebounding from a drop in
the previous session amid a deepening Italian political crisis.
Milan shares rose 0.89% and its banking index .FTIT8300
gained 0.96%. Shares in Renault and Fiat both rose around 1.7%.
Italian prime minister Giuseppe Conte resigned on Tuesday,
potentially paving the way for a new coalition government.
Capita Plc CPI.L rose 4.3% to the top of the STOXX 600
index, after brokerage Goldman Sachs upgraded its shares to
"buy".