European stocks extend recovery ahead of PMIs; Adidas jumps

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 22, 2020. REUTERS/Staff

(Reuters) – European stocks extended a rebound on Wednesday from a steep selloff earlier this week, with investors awaiting the latest business activity data to see if the economic recovery is stalling as many countries reimpose coronavirus restrictions.

The pan-European STOXX 600 .STOXX rose 0.7% by 0712 GMT, with London’s exporter-heavy FTSE 100 .FTSE jumping 0.9% as the pound was hammered by fresh UK curbs to tackle a second wave of COVID-19 infections. [.L]

The German DAX .GDAXI rose 1%, with Puma PUMG.DE and Adidas ADSGn.DE up over 4% after U.S. sportswear maker Nike NKE.N reported strong earnings and forecast better-than-expected sales for 2020.

Osram OSRn.DE surged 13.5% after Austrian sensor maker ams AMS.VI said it had signed a so-called domination and profit and loss transfer agreement as a key step towards closing out its 4.6 billion euro ($5.4 billion) takeover of the German firm.

Data compiler IHS Markit is set to release its early reading of September business activity for the euro zone and UK later in the day. With a resurgence in COVID-19 cases driving many countries to tighten curbs again, investors are wary it can hurt a fragile economic recovery in the continent.

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