UKX FTSE 100 Index

By Sara Sjolin, MarketWatch

Deutsche Bank rallies more than 10%

European stock markets rebounded from a three-year low on Wednesday, as investors picked up stocks beaten down in a seven-session selloff.

The Stoxx Europe 600 index jumped 1.8% to 314.86, after closing at the lowest level since Oct. 2013 on Tuesday. That capped a losing streak fueled by concerns about oil prices and slowing global growth.

"Major European markets are trying to rally once again, but with previous rebounds having lacked conviction, falling sharply after early gains, sentiment remains fragile," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, in a note.

"Any early movement in markets is, however, just a precursor to this afternoon's main event, billed as possibly the most important debate of the year so far, as [Federal Reserve Chairwoman] Janet Yellen makes her first official public statement since raising rates in December," she added.

Germany's DAX 30 index climbed 1.7% to 9,036.91, while France's CAC 40 index gained 1.8% to 4,069.79. The U.K.'s FTSE 100 index rose 0.9% to 5,685.54 (http://www.marketwatch.com/story/uk-stocks-wobble-after-sinking-to-three-year-low-2016-02-10).

Read: Five questions Janet Yellen must answer (http://www.marketwatch.com/story/five-questions-janet-yellen-must-answer-2016-02-09)

Banking relief: Banks, which were sold off heavily in previous sessions, led the charge higher in Wednesday's trade, with the Stoxx Europe 600 Banks Index rallying 3.8%.

Shares of Deutsche Bank AG (DBK.XE) (DBK.XE) jumped 11% on news the German bank is considering buying back billions of euros of its own bonds.

Among other banking shares, Eurobank Ergasias SA (EUROB.AT) climbed 11%, UniCredit SpA (UCG.MI) rose 10%, Commerzbank AG (CBK.XE) added 6.3%, and UBS Group AG (UBS) gained 5.7%.

Oil rebound: Prices for both crude oil and Brent rose more than 2% (http://www.marketwatch.com/story/oil-hovers-above-28-a-barrel-as-market-braces-for-more-supply-data-2016-02-10) . On Tuesday, they posting sharp losses on the back of a warning the supply glut could get even worse (http://www.marketwatch.com/story/iea-warns-oil-surplus-will-be-worse-than-expected-2016-02-09).

Read: Cheap oil may trigger a new era of OPEC dominance, warns IEA (http://www.marketwatch.com/story/cheap-oil-for-longer-may-trigger-a-new-era-of-opec-dominance-warns-iea-2016-02-09)

However, the rebound in oil prices wasn't enough to turn the sentiment on energy-related stocks, with most of them trading in negative territory. Shares of Tullow Oil PLC (TLW.LN) dropped 4.7% after a financial update (http://www.marketwatch.com/story/tullow-loss-narrows-for-2015-on-lower-write-offs-2016-02-10), while Seadrill Ltd. (SDRL.OS) (SDRL.OS) fell 2.8% and Technip SA (TEC.FR) lost 1.8%.

Other movers: Shares of A.P. Moeller-Maersk AS (MAERSK-B.KO) slumped 6.4% after the world's largest container operator swung to a loss in the fourth quarter (http://www.marketwatch.com/story/moller-maersk-earnings-hit-by-oil-freight-slumps-2016-02-10).

Hikma Pharmaceuticals PLC (HIK.LN) sank 11% after the company said it has lowered the bid price (http://www.marketwatch.com/story/hikma-revises-terms-for-roxane-bid-lowers-price-2016-02-10) for its previously announced acquisition of Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc. after getting new information on Roxane's financial performance in 2015.

Economic data: French industrial production fell 1.6% (http://www.marketwatch.com/story/frances-industrial-production-falls-16-on-month-2016-02-10) in December compared with the previous month, missing expectations for a 0.2% increase. In Germany, business sentiment has reached a record high (http://www.marketwatch.com/story/german-businesses-more-optimistic-than-ever-dihk-2016-02-10), according to a German Chambers of Commerce survey published Wednesday.

(END) Dow Jones Newswires

February 10, 2016 04:56 ET (09:56 GMT)

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