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PARIS: European stocks got a respite on Friday after their worst three-day selloff in almost eight months, supported by a rebound in the recently hammered technology stocks.
The Stoxx Europe 600 Index added 0.2% at 9:48 a.m. in London, after yesterday tumbling the most since September. Bayer AG weighed on gains, sliding after a profit warning.
Hawkish comments from a number of central banks including the European Central Bank and the Federal Reserve rattled investors this week and sparked a selloff in both equity and bond markets.
Bayer fell 4% after saying it plans to cut its sales and profit forecasts for this year because of unexpectedly high stockpiling in Brazil of its crop-protection products.
Stoxx 600 technology shares rose for the first time in five sessions. It’s still shaping up to be the worst week for the sector since early November.
Despite the recent retreat, European equity funds have seen net investment inflows of US$2.4bil in the week to June 28, marking a 14th straight week of inflows for the region, according to Bank of America-Merrill Lynch strategists, citing EPFR Global data.
U.K. equities offer a good buying opportunity despite uncertainties over Brexit talks, said James Illsley, fund manager at JP Morgan Asset Management in London. Adidas AG gained 2.7% after U.S. rival Nike Inc. delivered a rosy annual forecast. - Bloomberg
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