By Sudeshna Ghoshal and Medha Singh
Sept 3 (Reuters) - European stocks rose on Thursday after three straight sessions of losses as a global bond selloff eased, with investors turning to upcoming U.S. economic data for clues on the Federal Reserve’s next policy moves.
The pan-European STOXX 600 was up 0.2% at 646.96 by 0810 GMT, after hitting a one-month low in the prior session. Regional indexes were mixed. Germany's DAX was up 0.1%, Spain's index was up 0.5%, while France's CAC 40 dipped 0.1%.
Soitec
jumped 10% to the top of the STOXX 600 index after the French chip materials maker raised its revenue growth outlook for the second quarter of 2027 to 50% year-on-year from its previous forecast of 30%.
The recent escalation of the Iran war pushed oil prices higher and amplified concerns about persistent inflation, swelling government debt and tighter monetary policy, triggering a global bond and stocks selloff.
European markets are particularly vulnerable to rising oil prices because of their reliance on energy imports.
Oil prices eased but remained above $90 a barrel, while euro zone bond yields dipped from multi-year highs. [O/R][GVD/EUR]
"Even though Brent will fluctuate, the actual product people use is at the highs of March and April, and this will have an impact. I think in Europe, it's part of why we believe the ECB, even though growth is not that huge, will probably have high rates," said Ricardo Castillo, head of investments at Mirabaud Group.
The latest survey showed growth in the euro zone's dominant services industry slipped to a two-month low in August, though solid, broad-based demand kept overall private sector activity steady.
Higher energy prices have raised expectations of higher rates globally. Traders are nearly certain the European Central Bank would raise borrowing costs to 2.5% at its policy meeting next week and deliver two additional quarter-point rate hikes by mid-2027.
Friday's U.S. non-farm payrolls report will be parsed for fresh clues on the Federal Reserve's policy path, following hawkish comments after Chair Kevin Warsh last week that prompted traders to increase bets on further rate hikes.
Deutsche Telekom AG shares gained 1.7% after reports said Elliott built a stake in the firm.
Insurer and money manager M&G fell .2% after reporting first-half results.
Sofina gained 3.6% after the Belgian investment holding company reported growth in net asset value in the first half of 2026 and revealed SpaceX as the largest position in its top private fund holdings.
(Reporting by Sudeshna Ghoshal and Medha Singh in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich)
