European equities recovered Thursday as the global bond selloff that triggered a three-day decline began to ease, with the pan-European STOXX 600 index climbing 1 percent to 646.15 by 0710 GMT.
The rebound marked a technical stabilization after the index hit a one-month low in the prior session. Performance across regional benchmarks remained mixed: Germany's DAX gained 0.1 percent and Spain's index rose 0.3 percent, while France's CAC 40 dipped 0.1 percent.
Deutsche Telekom AG shares climbed 1.7 percent after activist investor Elliott Investment Management acquired a stake in the telecommunications firm. Separately, Soitec, a French chip-materials maker, surged 10 percent following a raised guidance for second-quarter and full-year results, driven by accelerated demand for artificial intelligence data center optical link wafers.
The prior selloff had been fueled by escalating tensions in the Iran conflict, which drove oil prices higher and reignited inflation concerns alongside worries over expanding government debt and tighter monetary policy. Oil prices eased from their peaks but remained above $90 a barrel, while eurozone bond yields retreated from recent highs, creating the conditions for equity stabilization.
Investors are focused on Friday's U.S. non-farm payrolls report for signals on the Federal Reserve's policy direction. Federal Reserve Chair Kevin Warsh's hawkish comments last week prompted traders to increase bets on further rate hikes, making the employment data a critical input for positioning ahead of the next policy decision.
