TLDR
- European equities rebounded Thursday, snapping a three-day decline
- The STOXX 600 advanced 0.2% to reach 646.96, bouncing from one-month lows
- Soitec stock soared 10% following an upward revision of its revenue growth forecast to 50% annually
- Deutsche Telekom gained 1.7% after Elliott Investment Management disclosed a significant stake
- Crude oil prices moderated but remained above the $90 threshold, sustaining inflation worries
European stocks posted modest gains on Thursday as the intensity of a worldwide bond market selloff began to diminish. After enduring three consecutive days of declines, equity markets stabilized as selling pressure subsided.
The pan-European STOXX 600 index advanced 0.2% to settle at 646.96 by 0810 GMT. The benchmark had touched its lowest level in a month during the prior trading session.
Performance varied across major regional bourses. Germany’s DAX index edged up 0.1% while Spain’s benchmark climbed 0.5%. Meanwhile, France’s CAC 40 dipped 0.1%.
Soitec Surges Following Upgraded Revenue Guidance
French semiconductor materials manufacturer Soitec emerged as the session’s top performer. Shares skyrocketed 10%, claiming the top spot on the STOXX 600, after management elevated its second-quarter 2027 revenue growth projection to 50% on a year-over-year basis. This represented a substantial increase from the company’s previous estimate of 30%.
Broader markets had suffered significant pressure in preceding sessions. Escalating crude prices, driven by intensifying conflict involving Iran, amplified inflation concerns and sparked simultaneous declines across bond and equity markets.
European bourses are considered particularly vulnerable to elevated energy costs given the continent’s substantial reliance on imported fuel sources.
Energy prices retreated Thursday following President Donald Trump’s comments suggesting that additional strikes against Iran would probably be limited in duration. Nevertheless, Brent crude prices held above the $90 per barrel mark.
Ricardo Castillo, chief of investments at Mirabaud Group, noted that retail energy prices consumers actually pay have reached levels not witnessed since March and April. He suggested this development reinforces expectations that the European Central Bank will maintain elevated interest rates despite sluggish economic expansion.
Government bond yields across the eurozone retreated from multi-year peaks, offering some respite to equity investors. Market participants are pricing in virtual certainty that the ECB will lift rates to 2.5% when policymakers convene next week.
An additional two increases of 25 basis points each are anticipated by the middle of 2027.
Elliott Builds Position in Deutsche Telekom
Deutsche Telekom stock advanced 1.7% following disclosures that activist hedge fund Elliott Investment Management had accumulated a substantial stake in the telecommunications giant. Elliott has additionally signaled opposition to any potential merger between Deutsche Telekom and its American subsidiary, T-Mobile US.
Belgian investment holding firm Sofina climbed 3.6% after disclosing net asset value expansion during the first six months of 2026. The company also unveiled that SpaceX represents the largest position within its premier private equity portfolio.
Insurance and asset management group M&G edged down 0.2% following the publication of its semi-annual financial results.
Market participants are now turning their attention to Friday’s US non-farm payrolls release. The employment figures could significantly influence speculation regarding the Federal Reserve’s policy trajectory after hawkish remarks from Fed Chair Kevin Warsh during the previous week.
Meanwhile, services sector expansion in the eurozone decelerated to a two-month low in August, although aggregate private sector activity maintained momentum.
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