Euro Stocks Rebound as ECB Outlook Clouded by Hot PPI Data
European stocks rebounded on Thursday after a three-session losing streak as government bond yields eased and dovish Fed commentary helped stabilize risk assets. The pan-European STOXX 50 index rose 0.5% to 649.10, moving away from its one-month low.
The German DAX and London's FTSE 100 both climbed 0.7%, while France's CAC 40 gained 0.1%. However, the euro fell 1.2%, pulling back further from its 3.37% 2011-era highs touched earlier in the week.
The rebound was short-lived as hot data on eurozone producer prices (PPI) clouded the European Central Bank's (ECB) outlook ahead of next week's meeting. Eurozone PPI surged 1.6% month-on-month from a 0.3% decline in June, nearly 35% above the 1.2% consensus estimate.
The increase was driven overwhelmingly by energy costs, which rose 5.6% on the month and 12.9% year-on-year. Industrial prices excluding energy were flat month-on-month.