European Stocks Rebound After Global Bond Selloff; Adidas Jumps
European stocks rebounded after bonds globally sold off Tuesday on worries about fiscal deficits in developed markets. Adidas AG rose after the sportswear group was upgraded to buy at Jefferies.
The Stoxx Europe 600 Index advanced 0.3% as of 9:17 a.m. in Paris. The technology and consumer sectors outperformed, while insurance as well as food and beverage shares were among the biggest laggards.
Among individual stocks, Adidas rose as much as 3.1% after Jefferies raised the sportswear stock to buy following its “brutal” de-rating. Nokia Oyj gained 2.1% after getting an upgrade from BNP Paribas Exane to outperform from neutral.
European stocks dropped by the most in a month on Monday as rising bond yields in Europe and across the globe sapped risk appetite.
“We don’t see yields rising much further than their current levels, even if some countries such as the UK and France have their own specific dynamic,” said Roland Kaloyan, head of equity strategy at Societe Generale SA. “I don’t see this movement as a threat to the rising trend of stock markets, rather more as a one-off.”
Source: Bloomberg
