European equities moved slightly higher on Thursday, with the STOXX 600 attempting to stabilise after three consecutive sessions of declines as investors assessed lower bond yields and comments from a Federal Reserve official.
The pan-European STOXX 600 rose 0.12% after reaching a more than one-month low on Wednesday. Germany’s DAX gained 0.2%, while France’s CAC 40 and London’s FTSE 100 were broadly unchanged.
The moves followed declines across European markets earlier in the week as sovereign bond yields increased and energy prices rose amid military exchanges in the Persian Gulf.
German 10-year Bund yields had reached 3.37%, their highest level since 2011, while US 10-year Treasury yields approached 4.80%.
Oil prices had also moved above $90 a barrel earlier in the week amid developments involving the US and Iran in the Strait of Hormuz.
Fed’s Williams Says Policymakers Should “Wait and See”
Investors were also assessing comments from New York Fed President John Williams regarding the outlook for US interest rates.
Williams said on Wednesday that policymakers should “wait and see” incoming economic data before deciding on further monetary tightening.
The comments came ahead of the Federal Open Market Committee meeting scheduled for September 16.
US private payroll data also came in below market expectations. Private-sector employment increased by 38,000 jobs in August, contributing to declines in US Treasury and Asian sovereign bond yields.
Attention was set to turn to comments from Federal Reserve Governor Christopher Waller later in the day for further indications regarding the outlook for monetary policy.
Oil Prices Ease as Markets Await Eurozone PPI
Crude oil prices moved lower on Thursday after trading above $90 a barrel earlier in the week.
Investors were also awaiting Eurozone Producer Price Index data scheduled for later in the session, ahead of the European Central Bank’s monetary policy meeting on September 10.
Among individual stocks, Deutsche Telekom (TG:DTE) shares rose 1.4% following a report that activist investor Elliott had built a stake in the company.
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