Source: Sharecast
The pan-European Stoxx 600 was 0.7% higher at 545.46 by 1231 CEST, having fallen 2% over the past four days to finish at its lowest since 4 July on Wednesday.
Markets had fallen the previous session on the back of speculation that Donald Trump was planning to oust the head of the Federal Reserve, Jerome Powell, for not cutting interest rates sooner.
Trump later denied reports, saying a move was "highly unlikely" – though not everyone was convinced by a president known for his controversial, erratic decision-making.
"Short-end rates and the greenback didn’t bounce like they used to [following Trump's denial]," said Stephen Innes, managing partner at SPI Asset Management. "Perhaps markets have learned that even if Trump doesn't fire Powell, the mere thought that he might is enough to destabilise the compass."
UK jobless rate rises
In economic news, the UK unemployment rate unexpectedly rose to 4.7% in the three months to May from 4.6% a month earlier, hitting the highest level since early 2021. Meanwhile, annual wage growth for both regular earnings and total earnings (which include bonuses) was 5%, slowing from 5.3% and 5.4%, respectively, a month earlier.
"Coming hot off the heels of yesterday’s unwelcome CPI rise that puts the UK as having the highest inflation rate in the G7, the Bank of England are clearly in a sticky situation," said Joshua Mahony, chief market analyst at Scope Markets.
"Between negative growth, rising inflation, a black hole in the public finances, and now higher unemployment, we are looking at an economy that needs help but where both the treasury and central bank have their hands tied."
Meanwhile, Eurostat data revealed that eurozone inflation rose to 2.0% as expected in June, up from 1.9% in May and in line with the European Central Bank's target.
In the US, there will be a range of key economic indicators released, including jobless claims, the Philly Fed manufacturing survey and retail sales data.
Market movers
London's Ocado Group was a standout performer, surging 14% after the release of its first-half results. The retail tech and logistics company said its full-year outlook remains on track after swinging to a big profit in the first half, in which revenues rose at a double-digit rate.
A number of Swedish blue chips were rising strongly after updates: vegetable oils group AAK jumped 12% after reporting a second-quarter operating profit comfortably ahead of market forecasts; auto giant Volvo was trading 8% higher despite swinging to a net loss in the second quarter due to restructuring and impairment charges, as adjusted earnings came in ahead of forecasts; while shares in telecom Tele2 rose 8% after the firm upgraded its full-year profit outlook due to cost efficiencies.
Heading the other way was British budget airline EasyJet which dropped 5% after warning that profits would be impacted by recent French industrial action, while payments firm Wise sank 11% after revealing that its cross-border take rate fell in its first quarter.
Novartis fell in Zurich despite the Swiss pharma giant launching a share buyback of up to $10bn and lifting its full-year earnings target.