Source: Sharecast
The pan-European Stoxx 600 index finished 0.6% higher at 550.09, continuing its rebound after settling at 543.17 on Tuesday – its lowest finish since 6 August.
Paris was the only major bourse in the red on Thursday, falling 0.2% on the back of heavy losses from pharma titan Sanofi and luxury stocks.
Analysts were also digesting the latest legal moves on Donald Trump's tariffs after the US president on Wednesday asked the Supreme Court to quickly accept and rule on an appeal seeking to overturn last week's federal appeals court ruling that deemed most of the tariffs illegal.
US markets opened in subdued fashion on Wall Street after ADP data showed that just 54,000 private jobs were created in August, down from a revised 106,000 in July and well below the consensus forecast of 65,000.
In other news, data closer to home was also in focus. The HCOB Eurozone construction PMI total activity index rose to 46.7 for August, up on July’s 44.7. While still in negative territory (below 50.0), this was the highest reading since February 2023.
Meanwhile, eurozone retail sales fell by 0.5% in July after a 0.6% increase in June. After growing by their most in 15 months, July's decline was the steepest drop since August 2023 and was worse than the 0.2% fall expected by analysts.
Market movers
Shares in Sanofi slumped 8% as the French pharma giant's new eczema drug, amlitelimab, disappointed in trials.
French luxury peers were also weighing on the CAC 40, with LVMH, Kering and Hermes among the worst performers. European luxury stocks had performed well earlier in the week, especially LVMG and Kering, after HSBC upgraded the fashion giants from 'hold' to 'buy'.
Meanwhile, airline stocks were lower after UK budget airline Jet2 forecast full-year operating profit towards the lower end of expectations, causing shares to tank 13%. EasyJet, Ryanair, TUI and IAG were also all down on the news.