European shares recover as bond selloff stabilizes ahead of US data

European shares climbed on Wednesday, bouncing back from steep losses in the previous session, as a selloff in longer-dated bonds appeared to stabilize, while investors awaited US job openings data.

The STOXX 600 index was up 0.4% at 545.35 points, as of 0707 GMT, led by a 1.3% gain in technology, the top-performing sector.

Shares of Adidas climbed 2.5% after brokerage Jefferies raised its rating on the German sportswear brand to “buy” from “hold”, citing the Bavarian-based company’s increased diversity of growth drivers.

Alleviating some pressure on equities, longer-dated European bonds steadied after Tuesday’s selloff led by fiscal health concerns, which also pressured equities as the benchmark STOXX index logged its biggest one-day drop in more than a month.

Still concerns were far from over as yields on longer-dated German and French bonds were at multi-year highs and those on Japanese bonds hit a record peak.

Among others, Swiss Life dropped 2.4% after the insurer posted a lower first-half net profit due to higher tax expenses.

Later in the day, investors will tune into comments from European Central Bank President Christine Lagarde for any insights on monetary policy, while US job openings data for July is also expected.