European markets positive on accelerating business activity

Global shares edged up on Wednesday as U.S. stock futures steadied after a pullback in tech darlings while European markets were buoyed by accelerating business activity and positive earnings.

The Euro STOXX index added 1.3%, heading for its best day in nearly two months, helped by data showing euro zone business activity quickened last month, while the services industry returned to growth. Top performers included Germany’s Rational and Merck after well-received numbers.

The MSCI world equity index, which tracks shares in 49 countries, was trading 0.1% higher after a sell-off on Tuesday from near record highs. MSCI’s broadest index of Asia-Pacific shares outside Japan sank 0.4% for its fourth consecutive day of losses, although Asian trading was thin due to holidays in Japan, China and South Korea.

Nasdaq futures were up 0.4% after a sharp fall overnight, while S&P 500 futures also added 0.3%. The Nasdaq had dropped 1.9% on Tuesday as some big tech names ran into profit- taking, including Microsoft Corp, Alphabet Inc, Apple Inc and Amazon.com Inc. Stretched valuations were tested when U.S. Treasury Secretary Janet Yellen said rate hikes may be needed to stop the economy overheating. She later walked back the comments, but it reminded investors that rates would have to rise at some point in the future.

Federal Reserve Chair Jerome Powell has argued the labour market is still far short of where it needs to be to start talking of tapering asset buying.

In commodity markets, palladium rose 0.7% to $3,004, near to the record high hit on Tuesday on worries over short supplies of the metal used in emissions controlling devices in automobiles. Gold was left lagging at $ 1,777 an ounce. Oil prices climbed to multi-week peaks as more countries opened their borders to travellers, improving the demand outlook for petrol and jet fuel. Brent added 1.2% to $ 69.69 a barrel, near its highest since mid-March, while U.S. crude rose 1.1% to $66.43 per barrel, having earlier climbed to the most since March 8.