European equities rose on Wednesday, bouncing back from losses in the previous session as the sell-off in longer-dated regional bonds appeared to ease.
By 08:10 GMT, the pan-European Stoxx 600 was up 0.4%, Germany’s DAX gained 0.5%, and France’s CAC 40 added 0.7%.
On Tuesday, the Stoxx 600 had posted its largest single-day drop in over a month, dragged lower by concerns over Europe’s fiscal stability, which drove bond yields higher—yields that typically move inversely to prices. Yields on long-term French and German government debt, however, remained near multi-year highs.
“Globally, the long ends of yield curves remain under upward pressure amid a mix of fiscal concerns and worries about central bank independence,” analysts at ING said in a note to clients.
Investors also digested a batch of Eurozone economic data. The HCOB Eurozone Composite Purchasing Managers’ Index (PMI) for August, compiled by S&P Global, increased to 51.0 from 50.9 in July.
Although this marked a 12-month high and stayed above the 50-point threshold separating expansion from contraction, the reading indicated only modest growth, with gains in manufacturing offset by a weaker-than-expected services sector.
Germany, traditionally the region’s economic engine, saw growth cool, while France remained in contraction territory. Spain performed strongest among major economies, but growth there also eased.
In individual stocks, Adidas (BIT:1ADS) shares rose after brokerage Jefferies upgraded the athletic apparel maker to “buy” from “hold,” noting that the company now has a larger set of potential growth avenues.
Meanwhile, Swiss Life’s (TG:SLW) stock dipped after higher tax costs contributed to a decline in the insurer’s first-half net profit.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply