European stocks recover from 3-week low, supported by healthcare and energy

European stocks rebounded on Thursday, buoyed by gains in the healthcare and energy sectors. Investors are anticipating a series of economic data, looking for any indications of earlier-than-expected monetary easing from major central banks this year.

As of 0804 GMT, the European STOXX 600 index increased by 0.5 percent, recovering from its lowest level in three weeks in the previous session.

The energy sector led the gains, rising by 1.3 percent, followed by a 0.8 percent increase in the healthcare sector. Improved sentiment was driven by data revealing that services activity in China expanded at its fastest pace in five months.

British clothing retailer Next saw a 5 percent surge, claiming the top spot on the STOXX 600 index, after raising its profit forecasts for the year ending January 2024.

Conversely, Evotec’s shares experienced a 16 percent decline following the unexpected departure of its long-time CEO, as announced by the German biotechnology company.

Investors are eagerly awaiting Eurozone PMI readings and consumer inflation data in Germany. This anticipation comes on the heels of the Federal Reserve’s December policy meeting minutes, which indicated officials’ confidence in controlling inflation. Concerns have shifted towards the risks associated with a tightening monetary policy on the economy.

In other economic news, fresh data revealed that consumer prices in France increased in December, aligning with expectations.