European Stocks Rebound as Euro Zone Inflation Data Looms
European stocks saw a modest rebound on Friday after a sharp selloff driven by the bond market rout.
The pan-European STOXX 600 index rose 0.4% to 629.18 points by 0720 GMT, recovering from Thursday's close which was its lowest level in over three months.
The European Central Bank's monetary policy tightening plans are expected to be influenced by the euro zone flash inflation data due later in the day.
Euro zone inflation data will provide crucial clues on whether the ECB should proceed with interest rate hikes, and the US nonfarm payrolls report is also set for release at 1230 GMT, with forecasts centered around a gain of 90,000 jobs in September.
European banking stocks were hit hard by concerns over higher interest rates denting the economy, with Germany's Commerzbank downgraded to 'sector perform' from 'outperform' by RBC and Puma declining 1.2% due to weak demand in China and heightened competition.