European stocks climbed Wednesday ahead of key data releases from the eurozone.
The pan-European Stoxx 600 gained 0.7% in early trade, with tech stocks bouncing 1.5% while basic resources shed 0.3%.
European investors will be focused on the latest preliminary eurozone purchasing manager’s index (PMI) data for September. The data is due at 9 a.m. London time and will give an indication of the state of health of the region’s services and manufacturing industries.
Ahead of that data, Spain revised its second-quarter GDP (gross domestic product) contraction to 17.8% quarter-on-quarter, less severe than the initial estimate of 18.5%.
Stocks in Asia-Pacific were mixed in overnight trade as investors reacted to recent comments from Federal Reserve Chairman Jerome Powell on Tuesday.
In the prepared testimony, Powell said the central bank remains committed to supporting the economy through its tools “for as long as it takes.” He also noted that “many economic indicators show marked improvement,” though the path forward “continues to be highly uncertain.”
Coronavirus developments could also weigh on investor sentiment, with U.K. Prime Minister Boris Johnson on Tuesday reversing the lifting of some lockdown measures in England. That came following a surge in coronavirus cases in the country, with mainland Europe also seeing a sharp rise in infections.
Cases in the U.S. have also started to trend upward following weeks of declines, though some health experts say it’s too early to tell whether the upward trend will continue. The virus has taken more than 200,000 lives in the country.
British technical products company Diploma saw its stock surged more than 18% in early trade, after raising £190 million ($241 million) in a share placing.
Adidas shares climbed 5%, buoyed by a strong earnings report from U.S. rival Nike.
At the bottom of the European blue-chip index, Danish biotech firm Genmab dropped 12%.