European shares rebound ahead of euro zone inflation data, US jobs report
SPY•European shares rebounded, with the STOXX 600 up 0.9% at 632.77 points by 0835 GMT after falling 1.3% on Thursday. Investors awaited euro zone inflation data and a US jobs report, while technology shares led sector gains, rising 2.2%.
1. Stocks recover
European shares rebounded on Friday after a sharp selloff driven by a bond market rout. The STOXX 600 rose 0.9% to 632.77 points by 0835 GMT, after closing 1.3% lower on Thursday and touching its lowest level in more than three months.
2. Data in focus
Investors awaited euro zone flash inflation data for signals on the European Central Bank’s monetary policy plans, as well as a US nonfarm payrolls report. Forecasts estimate a gain of 90,000 jobs in September, with the unemployment rate expected to remain at 4.1%; a hot reading could revive bets on a second Federal Reserve rate hike this month.
3. Company moves
Technology shares led sector gains, up 2.2%. Julius Baer rose 2.9% after announcing a share buyback programme of up to 600 million Swiss francs ($724 million), while Commerzbank dropped roughly 1% after RBC downgraded the stock to “sector perform” from “outperform.”
