European Shares Rebound as Inflation Data Eases Market Woes

European shares rose by 0.4%, driven by strong tech performance, while Nvidia's earnings results caused mixed reactions. Inflation data from Germany and Spain showed a decline, impacting bond yields. Additional market responses included changes in U.S. jobless claims and uncertainties in China's economic recovery.

European shares shrugged off Wall Street's disappointment at 'Magnificent 7' top dog Nvidia's results on Thursday, while the euro and bond yields fluttered lower as German and Spanish inflation data trickled in.

With a sprightly 0.4% gain on the board, the pan-European STOXX 600 index was pushing to regain the record highs it set in mid-June before being savagely hit in a global rout earlier this month. A near 1% rise in the region's tech shares led the way as traders swerved Wednesday's 7% after-hours slump in AI darling Nvidia's shares after it published results that left some investors unenthused.

Despite a third-quarter revenue forecast of $32.5 billion surpassing Wall Street's expectations, its second-quarter revenue outperformance was the smallest relative to analysts' forecasts in six quarters. 'This wasn't the sort of massive beat that Nvidia has often reported over the last 18 months,' Deutsche Bank strategist Jim Reid said.

There were plenty of other things for traders to digest though. The benchmark gauge of European borrowing costs, the German 10-year Bund yield, fell after data from six key German states pointed to a noticeable decline in the national inflation rate this month.

(With inputs from agencies.)