Key facts
- European stocks rose on Thursday, with the STOXX 600 up 1%.
- The easing of a global bond selloff contributed to the market's recovery.
- Deutsche Telekom shares increased by 1.7% following reports of Elliott building a stake.
- Soitec saw a 10% jump after improving its Q2 and full-year outlook.
- Upcoming U.S. non-farm payrolls data is being closely watched for Federal Reserve policy indications.
European stocks edged higher on Thursday, recovering from a three-session losing streak as a global bond selloff eased. The pan-European STOXX 600 index rose 1% to 646.15 by 0710 GMT, after reaching a one-month low in the previous session. Regional indexes showed mixed performance, with Germany's DAX up 0.1%, Spain's index up 0.3%, and France's CAC 40 down 0.1%.
The recent escalation of tensions involving Iran had pushed oil prices higher, amplifying concerns about persistent inflation, swelling government debt, and tighter monetary policy, which had triggered a global selloff in bonds and stocks. Oil prices eased but remained above $90 a barrel, while euro zone bonds slid from recent peaks.
Among individual stock movers, Deutsche Telekom AG shares gained 1.7% following reports that Elliott has built a stake in the firm. Soitec jumped 10% after the French chip-materials maker raised its second-quarter and full-year outlook, citing accelerating demand for wafers used in AI data-center optical links.
Investors are now turning their focus to upcoming U.S. economic data, particularly Friday's non-farm payrolls report, for clues on the Federal Reserve's next policy moves. Hawkish comments from Fed Chair Kevin Warsh last week prompted traders to increase bets on further rate hikes.