European Stocks Bounce Back After Bond Rout, Inflation Fears

European stocks rebounded on Friday after a sharp selloff driven by a bond market rout, while investors parsed inflation data for fresh clues on monetary policy.

The pan-European STOXX 600 rose 0.6% to ​630.47 points by 1005 GMT, after touching its lowest in more than three months on Thursday.

Data showed euro zone inflation surged more than expected in September and is likely to rise further in the coming months, keeping pressure on the European Central Bank to raise interest rates again.