European markets open to close, UK politics, earnings, data

LONDON — European stocks bounced on Wednesday as markets attempted to reverse a negative slide in the previous trading session.

The pan-European Stoxx 600 jumped 1.3% by mid-morning, with retail stocks adding 2.6% to lead gains as almost all sectors and major bourses traded in positive territory. Banks bucked the upward trend to shed 0.4%.

Just Eat Takeaway shares surged more than 17% after Amazon agreed to take a 2% stake in its U.S. subsidiary GrubHub in order to give access to its Prime members.

At the bottom of the European blue chip index, embattled German gas giant Uniper slid 7% as it continued bailout talks with the German government.

The higher trade for Europe comes after the pan-European Stoxx 600 closed down by 2.1% on Tuesday as fears of a recession grew in the region.

The July Sentix Economic Index on Monday showed investor morale across the 19-country euro zone has plunged to its lowest level since May 2020, pointing toward an “inevitable” recession.

On Tuesday, the euro fell to its lowest level in two decades as fears of a recession ramped up, with gas prices soaring and the Ukraine war showing no signs of abating.

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U.S. stocks also fell Tuesday before staging a late recovery. Investors stateside are looking ahead to publication of the U.S. Federal Reserve‘s minutes from its latest Federal Open Market Committee meeting on Wednesday.

U.S. data releases this week also include the June jobs report on Friday. According to Dow Jones estimates, job growth likely slowed in June, with 250,000 nonfarm payrolls added, down from 390,000 in May. Economists surveyed expect the unemployment rate to hold at 3.6%.

Stock futures stateside pointed to a negative open on Wednesday in early premarket trade, while shares in Asia-Pacific mostly retreated as Covid-19 lockdown concerns resurfaced.

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