European Shares Climb As Yields Retreat

European stocks advanced on Thursday as investor concerns about a U.S. debt ceiling deal eased and the U.S. Treasury bond yields retreated further from the highest level since June ahead of U.S. non-farm payrolls data, due on Friday.

The U.S. jobs report is seen as crucial in influencing the timing of the start of winding down the Fed’s QE program.

The pan European Stoxx 600 gained 1 percent to 455.84 after losing 1 percent in the previous session. The German DAX climbed 1.1 percent, France’s CAC 40 index rallied 1.2 percent and the U.K.’s FTSE 100 was up 0.9 percent.

Automakers topped the gainers list, with BMW, Daimler, Volkswagen and Renault all climbing around 2 percent.

TeamViewer shares fell 4.3 percent to extend losses from the previous session after the software company reported quarterly results below its own expectations and cut its full-year guidance.

Sika AG shares gained 2.5 percent. The Swiss specialty chemicals company confirmed fiscal 2021 targets, expecting sales growth in local currencies of 13 percent-17 percent as well as an over-proportional EBIT increase.

Spanish utility Iberdrola surged 5.8 percent after reports that the company is in talks with the Spanish government over energy pricing.

Volution Group shares advanced 1.5 percent after the British ventilation-equipment maker said revenue and earnings increased in fiscal 2021.

Workspace Group shares jumped 4 percent. The real estate investment trust company said that customer demand improved during the second quarter of fiscal 2022.

In economic releases, German industrial output fell 4 percent month-on-month in August, reversing a 1.3 percent rise in July, Destatis reported. Economists had forecast a monthly fall of 0.4 percent.

U.K. house prices grew 1.7 percent month-on-month in September, following an increase of 0.8 percent in August as stamp duty holiday draws to a close, survey data released by the Lloyds Bank subsidiary Halifax showed. This was the third consecutive rise in prices.