Euro Stocks Rebound on Easing Yields, But Inflation Concerns Remain
European stocks rose on Thursday, breaking a three-session losing streak, as easing government bond yields and dovish Federal Reserve comments helped risk assets stabilize after last week's sell-off.
The pan-European Stoxx Europe 600 index gained 0.5% to 649.10, moving away from Wednesday's one-month low.
Germany's DAX and London's FTSE both rose 0.7%, while France's CAC40 gained 0.1%. The retreat in bond yields followed New York Fed President John Williams' 'wait and see' comments on Wednesday and a soft ADP print, which showed private payrolls rising by 38,000 in August.
However, the rally was tempered by eurozone producer prices surging well above consensus in July, with a 1.6% month-on-month increase driven overwhelmingly by energy costs rising 5.6% on the month and 12.9% year-on-year.