Brightening outlook pushes markets higher

• Global equities rebounded Wednesday as investors focused on bright earnings and data pointing to an economic recovery.
• Stocks rose after US Treasury Secretary Janet Yellen clarified her comments by stressing she was not predicting or calling for a tightening of rates as the US embarks on a massive stimulus programme.
  
• Oil prices meanwhile moved higher on hopes for a recovery in demand.

Global equities rebounded Wednesday as investors focused on bright earnings and data pointing to an economic recovery.

London, Paris and Frankfurt stock markets rose as a survey showed the fastest growth of eurozone companies in April in nine months, sparking hope that the bloc would exit a double-dip recession.

The Dow followed cautiously, adding just 0.1% half an hour after the opening bell and after latest data showed the US jobs market strengthened last month even if payrolls still stand around eight million jobs down on pre-pandemic levels.

Tuesday's tech-led sell-off, which knocked Asian markets back, came after US Treasury Secretary Janet Yellen suggested US interest rates might need to be increased to temper inflationary pressures.

Stocks rose on Wednesday after Yellen clarified her comments by stressing she was not predicting or calling for a tightening of rates as the US embarks on a massive stimulus programme.

Oil prices meanwhile moved higher on hopes for a recovery in demand.

"European bourses are flying higher today, helped by strong earnings and accelerating business activity in the region," said OANDA analyst Sophie Griffiths.

Eurozone recession exit?

IHS Markit's eurozone composite Purchasing Managers' Index (PMI), a key gauge of business activity, rose to 53.8 points in April from 53.2 in March, above the crucial 50-point level that indicates growth.

The survey data "provide encouraging evidence that the eurozone will pull out of its double-dip recession in the second quarter," said IHS Markit chief business economist Chris Williamson.

"A manufacturing boom, fuelled by surging demand both in domestic and export markets as many economies emerge from lockdowns, is being accompanied by signs that the service sector has now also returned to growth."

Official data last week showed that the eurozone economy fell into its second recession in less than a year in the first quarter, hit by slow vaccinations and pandemic lockdowns.

All three main European markets fell sharply Tuesday on concerns over high valuations as investors reassessed recent bumper gains.