European STOXX 600 rebounds 0.8% as soft US jobs and cheaper oil ease hike fears
The pan-European STOXX 600 closed 0.8% higher on Friday, 2 October, after touching a more-than-three-month low on Thursday, as retreating oil prices and softer US September payrolls eased near-term Fed hike bets, Reuters reported. Tech led; the index still posted a weekly decline.
European equities rebounded on Friday, 2 October, after a bond-driven selloff, as softer US jobs data and falling oil prices reduced expectations of an immediate Federal Reserve rate hike, Reuters reported from Frankfurt.
STOXX bounce, weekly loss
The pan-European STOXX 600 closed 0.8% higher after touching its lowest level in more than three months on Thursday. Most sectors finished positive, with technology in the lead amid renewed AI enthusiasm: AT & S Austria rose about 10%, Infineon about 9%, and Aixtron and Soitec about 7.6% each, Reuters said. European banks were little changed on the day but logged their biggest weekly fall since April on concerns that higher rates could dent growth.
Soft payrolls, oil and yields
US nonfarm payrolls rose only 29,000 in September versus a Reuters poll forecast near 90,000, prompting traders to pull back October Fed hike bets. Lazard’s Ronald Temple said markets had “dodged a bullet” on October but still expected the Fed to tighten again before December. Oil fell about $3 a barrel on stock-release talk; the German 10-year yield dropped more than 6 basis points to 3.454%, Reuters reported. Despite Friday’s gain, the STOXX 600 still finished the week lower after a global bond selloff had battered risk assets.
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