Eurozone Stocks Rebound Amid Euro Zone Inflation Data and US Jobs Report
European stocks staged a rebound on Friday after a steep decline driven by a bond market rout. The pan-European STOXX 600 index rose 0.9% to 632.77 points by 0835 GMT, snapping a three-month low.
The index had closed 1.3% lower the previous day as global government bond yields hit multi-year highs. Investors are now awaiting euro zone inflation data due later in the day for clues on the European Central Bank's monetary policy plans.
Oil prices eased on Friday, but remained above $100 per barrel. Ricardo Castillo, head of investments at Mirabaud Group, noted that while the broad economy looks okay, energy and diesel issues can still be a concern.
European banking stocks were up 0.5%, despite being on track for their worst weekly performance since April. Germany's Commerzbank dropped roughly 1% after RBC downgraded the stock to 'sector perform' from 'outperform'. France's budget bill, presented on Thursday, aims to reduce the deficit and reassure bond investors ahead of next year's presidential election.
The US nonfarm payroll data due later today is also a key focus for investors. Forecasts estimate a gain of 90,000 jobs in September, while the unemployment rate is expected to remain steady at 4.1%. A strong print could revive bets on a second rate hike from the US Federal Reserve this month.