(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)
* Tech stock up 1.5% in morning trade
* Oil & gas stocks retreat from highs
* UK’s Next hits record high (Adds comment, updates prices)
By Sruthi Shankar
Sept 29 (Reuters) – European stocks rose on Wednesday after one of the worst market routs this year, with investors picking up beaten-down shares of technology sector, while chip equipment maker ASML gained on upbeat earnings forecast.
The pan-European STOXX 600 index rose 1% after shedding 2.2% in the previous session in their biggest percentage daily decline since mid-July.
Global stocks tumbled on Tuesday as U.S. government bond yields surged on growing expectations of faster interest rate hikes by the Federal Reserve and steered investors away from high-growth technology stocks.
European tech sector was up 1.5% after losing 4.8% on Tuesday. ASML Holding NV, one of the key suppliers to computer chip makers, rose 1.8% after raising financial targets.
ASM International jumped almost 6% a day after it raised its third-quarter order intake guidance.
After smooth gains in the past seven months, stock markets have faced volatility in September with investors nervous about major central banks withdrawing pandemic-era stimulus amid signs of higher inflation.
The benchmark STOXX 600 is on course to end September almost 3% lower, leaving it with marginal gains on the quarter.
“Rates are still low in a historical context, but a sharp sustained increase will unnerve markets if the economy is caught short of time to adapt to tighter credit conditions,” said Jim Smigiel, chief investment officer at SEI.
A recent surge in commodity prices, supply-chain constraints, the Evergrande debt crisis and a power crunch in China have all hurt global growth sentiment.
Data showed Spain’s inflation surged to a 13-year-high in September. The monthly reading of euro zone’s consumer confidence is due at 0900 GMT.
Among other individual stocks, British drugmaker AstraZeneca gained 2.3% after saying it will take full control of Caelum Biosciences in a deal worth up to $500 million.
British clothing retailer Next climbed 2.5% to a record high after it raised its full-year profit outlook for the fourth time in six months.
Meanwhile, the oil & gas index slipped back from over one-year highs as a recent rally in crude prices petered out following an unexpected build in U.S. inventories.
Royal Mail Plc dropped 4.9% to the bottom of UK’s FTSE 100 after UBS downgraded the stock to “sell” from “buy”. (Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
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