Global Market: European stocks rise as bond selloff eases; investors await U.S. jobs data

European stocks rose on Thursday after three consecutive sessions of losses as a global selloff in government bonds showed signs of easing, while investors shifted their focus to upcoming U.S. economic data for clues on the Federal Reserve’s monetary policy outlook, Reuters reported.

The pan-European STOXX 600 index gained 1% to 646.15 by 0710 GMT, after touching a one-month low in the previous session.

Read more: Rising Treasury yields emerge as key risk to Wall Street’s record rally


Regional markets were mixed, with Germany’s DAX rising 0.1% and Spain’s benchmark index adding 0.3%. France’s CAC 40 slipped 0.1%.

According to Reuters, an escalation in the Iran war had pushed oil prices higher and heightened concerns over persistent inflation, rising government debt and tighter monetary policy. Those concerns had contributed to a broad selloff in global stocks and bonds.

Oil prices eased on Thursday but remained above $90 a barrel, while euro zone government bonds retreated from recent highs.

Among individual stocks, Deutsche Telekom rose 1.7% following reports that activist investor Elliott had built a stake in the telecommunications company.

French semiconductor materials maker Soitec jumped 10% after raising its second-quarter and full-year outlook, citing stronger demand for wafers used in optical links for AI data centres.

Investors are now awaiting Friday’s U.S. non-farm payrolls report for further indications of the Federal Reserve’s policy direction.

Reuters reported that hawkish comments from Fed Chair Kevin Warsh last week had prompted traders to increase their expectations of further interest-rate hikes, making the upcoming labour-market data particularly important for financial markets.