European stocks traded higher in morning trade on Thursday as investors reacted to a rebound in oil prices and fresh data from China. The pan-European STOXX 600 index was trading 0.25 percent higher with nearly all sectors in positive territory. In terms of individual stocks on the STOXX 600 index, Pernod Ricard shares were 1.1 percent higher after highlighting improving sales in China. Shares of Roche were also trading in positive territory after the drugmaker said its cancer immunotherapy Tecentriq had produced positive results in a Phase III study. Hays was the worst performer on the index, down 3.4 percent, after the recruiter said hiring in Britain weakened significantly shortly after the June 23 vote to leave the European Union. The best performer on the index was Elekta, up 3.9 percent, after the maker of radiation therapy equipment posted first-quarter core profit above forecasts, Reuters reported. Fresh China data European markets bucked the gloomy trend set in Asia, where markets traded mostly lower on Thursday, shrugging off a better-than-expected reading on China's manufacturing sector. The government survey of large enterprises in the manufacturing sector saw an uptick in factory activity last month. The official manufacturing purchasing managers index (PMI) for August rose to 50.4, beating a Reuters estimate of 49.9 and the July print of 49.9. Levels above 50 indicate expansion, while levels below indicate contraction. US jobs eyed Sterling jumped 1 percent against the euro and a similar amount against the dollar to trade at $1.3249 after data showed that the U.K. manufacturing industry saw a strong post-Brexit vote rebound in August. The London-based FTSE index was trading 0.13 percent higher. Meanwhile, investors are also gearing up for the all-important U.S. jobs data due on Friday. The non-farm payrolls report will be eagerly watched by the U.S. Federal Reserve and could determine whether the central bank increases interest rates in September. "If we are right about August, and the hourly earnings number undershoots consensus, as we expect—thanks to a long-standing and persistent calendar quirk— the chances of a September rate hike will recede," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note Wednesday. Source: CNBC
