European shares gain as Genmab jumps, bond yields retreat

Oct 6 (Reuters) - European shares rose to near one-week highs on Tuesday, as Genmab led gains in healthcare stocks, while euro zone bond yields took a breather after rallying on fiscal and inflation concerns.

The pan-European STOXX 600 index was up 0.8% to 638.41 points by 0727 GMT, poised for a third straight session of gains.

Genmab climbed 7.6% to the top of STOXX 600 after the Danish biotech firm and US drugmaker AbbVie's blood cancer drug combination cut risk of progression or death in a late-stage study.

The broader healthcare sector was up 1.6%.

Attention now turns to euro zone retail sales data and the UK S&P Global PMI survey due later in the day, which could offer clues about the region's consumer spending and Britain's economic activity.

The euro hovered near a 17-month low, weighed down by political uncertainty after Spanish Prime Minister Pedro Sanchez called a snap election on Monday.

Meanwhile, the French government is seeking to enact an unpopular 2027 budget to lower its deficit, sparking a rout in bonds.

Still, euro zone bond yields eased, having touched multi-decade highs last week. [GVD/EUR]

Among other stocks, Italy's Technoprobe gained 2.3% after J.P.Morgan initiated coverage on the stock with an "overweight" rating.

(Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Mrigank Dhaniwala)