The Stoxx 600 closed 0.1 per cent higher, after a sharp early decline in technology stocks knocked the pan-European index down over 1 per cent intraday.
Data showed weekly US jobless claims fell more than expected, suggesting fears of a sharp weakening in the labour market, which in part had fuelled US recession fears, were overblown.
“Just because the labour market is cooling off doesn’t mean we’re (US) entering into a recession. While there has been renewed worry about the labour market, we believe it’s overblown,” said Skyler Weinand, chief investment officer, Regan Capital.
As European stocks recovered after the data, Wall Street also enjoyed strong gains for the day.
The Stoxx 600 has been volatile this week as investors evaluated fears of a potential US recession and looked for clear macroeconomic signals, both at home and globally.
German inflation data, due on Friday, will give investors a clearer picture on Europe’s largest economy as it teeters on the verge of a recession.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Europe’s largest company by market value, Novo Nordisk , rose 4.3 per cent, recovering more than half of Wednesday’s near 7 per cent slide, as rival Eli Lilly’s raised its annual sales forecast, boding well for the Danish drug maker.
Healthcare was among the top sectoral gainers, also boosted by a 8.3 per cent jump in British drugmaker Hikma Pharmaceuticals on an upbeat annual outlook, while media was the worst hit sector.
Allianz gained 2 per cent after the German insurer posted a better-than-expected rise in second-quarter net profit and said it was on track to meet its full-year target.
Several other European insurers recorded bumper first-half profits on Thursday, such as Zurich Insurance, Munich Re and London’s Beazley.
Siemens rose 2.1 per cent after beating quarterly earnings forecasts.
Deutsche Telekom was up 1.9 per cent after the telecom firm reported a 7.8 per cent increase in its second-quarter core earnings, while Entain climbed 5 per cent as the British gambling group raised its annual revenue forecast.
Meanwhile, valve maker Spirax-Sarco Engineering dropped 7.4 per cent after results, while German sportswear maker Puma fell 4 per cent as a raft of brokerage price-target cuts followed Wednesday’s dismal earnings. REUTERS
