European shares rebound after bond rout on easing Fed rate-hike bets
VGK•The pan-European STOXX 600 closed 0.8% higher as softer-than-expected U.S. jobs data, falling oil prices and lower bond yields eased rate-hike concerns. IG Group fell 22.6% after cutting its annual revenue forecast, while Julius Baer rose 2% after announcing a buyback of up to 600 million Swiss francs.
1. Shares rebound
European shares rose on Friday after a bond-driven selloff. The STOXX 600 closed 0.8% higher, though it posted a weekly decline, after softer-than-expected U.S. jobs data led traders to pull back on bets for an October Federal Reserve rate hike. German 10-year bond yields fell more than 6 basis points to 3.454%, and oil prices dropped $3 a barrel.
2. Technology leads gains
Technology shares gained 2.6%, leading sectoral advances as renewed enthusiasm for artificial intelligence lifted stocks. AT&S Austria Technologies & Systemtechnik rose 10%, Infineon Technologies gained about 9%, and Aixtron and Soitec each added 7.6%.
3. Company moves and rate outlook
IG Group slid 22.6% after cutting its annual revenue forecast because of subdued trading volatility. Julius Baer rose 2% after announcing a share buyback programme of up to 600 million Swiss francs. Euro zone inflation rose more than expected in September and is likely to rise further in the coming months; traders were pricing in an 81.8% chance of an ECB rate hike in December.
