Europe close: Stocks rebound, French shares rise despite bond sell-off

(Sharecast News) - European stock markets rose for the first time in three days on Wednesday, though ongoing political unrest in France continued to weigh on sentiment.

"This market is straining to push higher, but exuberant bulls are being held back by the fear that oil prices will rise further from here. Even embattled French stocks are higher, after some impressively brave bargain hunting yesterday," said Chris Beauchamp, chief market analyst at IG.

The benchmark Stoxx 600 index finished 0.9% higher at 644.49, with gains of 1% or more in Frankfurt, Paris, Milan and Madrid partly offset by subdued showings in London and Zurich.

France's CAC 40 managed to jump 1.1% despite 10-year OAT yields topping the 5% mark for the first time in nearly three weeks as continued rioting and looting by protestors leads to political and economic disruption across the country.

A trading update from French supermarket giant Carrefour did little to help market sentiment as the company lowered its earnings outlook after revealing that 70 its premises had been hit by the unrest. Carrefour shares finished down nearly 14% on the day.

London's FTSE 100 was limited to a 0.2% gain after official data showed a jump in inflation to 3.5% last month driven by higher fuel prices on the back of US President Donald Trump's war with Iran.

"UK stocks remained laggards, despite a slight improvement in fortunes compared with early trading, as a higher-than-expected inflation number continued to weigh on sentiment," said AJ Bell head of financial analysis Danni Hewson.

Meanwhile, oil prices eased but remained elevated as efforts to break the stalemate between the warring countries went nowhere - again. Front-month Brent crude futures were down 0.3% at $108.42 a barrel after topping the $110 mark earlier on.

Efforts to revive negotiations have continued, with Qatar and Pakistan maintaining diplomatic contacts between Washington and Tehran, but Iranian officials have signalled that meaningful progress remains unlikely unless the US addresses Tehran's key demands, leaving talks at an impasse.

In equity news, shares in Randstad surged 20% after the Dutch recruitment firm's third-quarter results beat expectations.

Adidas gained after the sportswear giant yesterday raised its full-year profit guidance on the back of record third-quarter results.

Other notable movers included Michelin which slumped after nine-month sales figures from the tire and auto parts group underwhelmed, while sunglasses maker EssilorLuxottica was in demand as third-quarter revenue growth of 14% impressed.