European Equities Boosted Amid Bond Market Stability
European shares recovered, with the STOXX 600 up 0.65%, driven by healthcare stocks and basic resources. Concerns continue over fiscal pressures as France faces political turmoil with a no-confidence vote looming. The market reacted to U.S. job data and interest rate cut expectations influenced by softer economic indicators.
European shares closed higher on Wednesday as investors reassessed fiscal challenges following a selloff in longer-dated bonds. The STOXX 600 index climbed 0.65%, buoyed by healthcare stocks including Roche Holdings and AstraZeneca. Basic resources also supported gains, rising 1.5% due to elevated copper prices amid expectations of a U.S. interest rate cut.
Despite stabilization, caution prevailed in France with Prime Minister Francois Bayrou's government facing a no-confidence motion next week. The political uncertainties, driven by unpopular budget measures, compounded fiscal pressures across developed economies. Germany and Italy saw long-dated bond yields settle after spikes earlier in the week.
Market volatility is imminent as September approaches, historically a challenging month. The STOXX 600's retail sub-index rose 1.5%, helped by a positive outlook on Adidas from Jefferies and J.P.Morgan. Meanwhile, a slight dip in U.S. job openings data fueled interest rate cut bets, making Friday's nonfarm payrolls pivotal for Federal Reserve actions.
(With inputs from agencies.)
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