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Europe Stocks Attempt Recovery After Wall Street-Led Selloff

European stocks attempted to push higher on Friday, erasing early losses, though Nasdaq-100 futures continued to point south after the worst selloff for Wall Street since early June. Spanish banks drove up the financial sector on merger talk.

After tumbling 1.4% in a late-day slide, the was up 0.2% to 366.66. The index opened 0.9% lower. The 0.1% and 0.3% each, while the rose 0.2%.

The tumbled by more than 800 points on Thursday, driven by a tech-led selloff that wiped 5% off the. Along with the, all three indexes marked the worst one-day drop since June 11. Stock futures hinted at modest gains for Friday, apart from techs, with off 0.4%.

Investors are waiting for important U.S. jobs data. Economists polled by MarketWatch expect 1.2 million jobs were added in August, but that hiring has slowed compared with early summer.

In Europe, data showed German manufacturing orders losing steam in July, though they rose for the third-straight month.

Shares of CaixaBank SA surged 11% and Bankia SA climbed 28% after the Spanish banks said late Thursday that they are in talks over a possible merger, potentially the biggest tieup in the country’s banking sector in years.

That filtered through to gains for the rest of the sector, with shares of Sabadell SA rising 11% and Bankinter up 6%. Banco Santander SA and shares rose over 3% each.

One notable element of Thursday’s trade was that the standout advancers this year were among the worst performers. Some of that selling continued Friday, with communications dropping 3.5% after falling nearly 10% on Thursday. But delivery service firm Delivery Hero AB rebounded with a near 2% gain after an 8% prior-day slump.

Elsewhere, shares of Ryanair Holdings PLC rose 1.6%.The cut-rate airline said it raised €400 million ($474.1 million) via a slightly discounted share placing late Thursday, airline seeks to preserve cash and boost it financial position. Shares of rival climbed 1.2%.

Source: Marketwatch

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