Heading: EUROPEAN SHARES REBOUND AFTER BOND-DRIVEN SELLOFF - 2026-10-03
Published October 3, 2026 Updated about 2 hours ago By Reuters FRANKFURT: European stocks rebounded on Friday, after a bond-driven selloff, as retreating oil prices and softer-than-expected US jobs data eased expectations for near-term rate hikes by the Federal Reserve. The pan-European STOXX 600 closed 0.8 percent higher, after touching its lowest in more than three months on Thursday. US job growth slowed more than expected in September and figures for the prior two months were revised sharply downward, prompting traders to pull back on US rate hike bets for October. “Markets dodged a bullet with a weaker-than-expected jobs report likely taking an October Fed rate hike off the table,” said Ronald Temple, managing director of Lazard Asset Management. “But with two more months of inflation data to be released before the December meeting, the Fed will be compelled to tighten policy again.” Bond yields declined, with the one on the German 10-year bond, a benchmark for the euro zone, down over 6 basis points at 3.454…
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