European shares edge higher as bond yields ease

European stocks showed a slight upward trend on Thursday, marking a turnaround from three consecutive days of declines. This shift was attributed to a recent easing of the global bond selloff, prompting investors to concentrate on forthcoming US economic data to decipher the Federal Reserve's subsequent policy actions. The pan-European STOXX 600 index rose by 1% to 646.15 at 0710 GMT, following a dip to a one-month low the previous day.

However, regional indexes exhibited mixed outcomes. Germany's DAX index increased by 0.1%, Spain's index rose by 0.3%, whereas France's CAC 40 dipped by 0.1%. The recent intensification of the Iran war raised oil prices and heightened concerns about sustained inflation, mounting government debt, and stricter monetary policy, which fueled a global bond and stocks sell-off.

Despite the oil price increase, it remained above $90 per barrel. Euro zone bonds, however, declined from their recent highs. In terms of individual stocks, Deutsche Telekom AG shares increased by 1.7% following reports that hedge fund Elliott had acquired a stake in the company. Soitec experienced a 10% surge after the French chip-materials firm announced it was raising its Q2 and full-year outlook, citing surging demand for wafers utilized in AI data-center optical links.

The forthcoming US non-farm payrolls report on Friday is anticipated to yield fresh insights into the Federal Reserve's policy trajectory, following Chair Kevin Warsh's hawkish remarks last week that encouraged traders to heighten their anticipation of additional rate hikes.