European Markets Rebound as Bond Selloff Eases

European shares made a comeback on Wednesday, recovering from sharp declines seen in the previous session. This rebound was mainly driven by a stabilization in the selloff of longer-dated bonds, which had shaken the market earlier.

The STOXX 600 index rose by 0.4% to 545.35 points at 0707 GMT, boosted significantly by a 1.3% increase in the technology sector. Adidas shares saw a notable rise of 2.5% following a positive reassessment by brokerage Jefferies, which upgraded its rating of the company from "hold" to "buy." The decision was influenced by Adidas's broadened growth strategy.

Pressures on equities eased as European bonds stabilized after a major selloff on Tuesday fueled by concerns over fiscal health. Despite the stabilization, worries linger as yields on German and French bonds approached multi-year highs. Additionally, Swiss Life faced a 2.4% drop following its release of lower first-half net profits due to higher tax expenses. Investors are also keenly awaiting comments from ECB President Christine Lagarde and U.S. job openings data for further monetary policy clues.

(With inputs from agencies.)