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European Stocks Close 1.7% Higher; Just Eat Takeaway Up Over 15% on Amazon Deal

Kinga Krzeminska | Moment | Getty Images
  • The pan-European Stoxx 600 rose 1.7%, with tech, media and retail shares leading the gains.
  • Just Eat Takeaway shares surged over 15% after Amazon agreed to take a stake in U.S. subsidiary GrubHub.
  • French utility EDF climbed nearly 15% after the French government said it would nationalize the company.

LONDON — European stocks closed higher on Wednesday as markets sought to reverse a negative slide in the previous trading session.

The pan-European Stoxx 600 provisionally closed up by 1.7%, with tech, media and retail shares climbing over 3% to lead gains as almost all sectors and major bourses ended in positive territory.

Just Eat Takeaway shares surged over 15% after Amazon agreed to take a 2% stake in its U.S. subsidiary GrubHub in order to give access to its Prime members.

French utility EDF, meanwhile, climbed more than 14% after the French government said it would nationalize 100% of the company.

The higher trade for Europe comes after the pan-European Stoxx 600 closed down by 2.1% on Tuesday as fears of a recession grew in the region.

The July Sentix Economic Index on Monday showed investor morale across the 19-country euro zone has plunged to its lowest level since May 2020, pointing toward an "inevitable" recession.

On Tuesday, the euro fell to its lowest level in two decades as fears of a recession ramped up, with gas prices soaring and the Ukraine war showing no signs of abating.

In Britain, traders are keeping an eye on political developments with Prime Minister Boris Johnson facing a mass exodus of government ministers.

British Finance Minister Rishi Sunak and Health Secretary Sajid Javid both resigned Tuesday in protest against Johnson's leadership, while several other officials also quit on Wednesday.

On Wall Street, stocks fell as investors stateside looked ahead to the publication of the U.S. Federal Reserve's minutes from its latest Federal Open Market Committee meeting on Wednesday.

U.S. data releases this week also include the June jobs report on Friday. According to Dow Jones estimates, job growth likely slowed in June, with 250,000 nonfarm payrolls added, down from 390,000 in May. Economists surveyed expect the unemployment rate to hold at 3.6%.

On the data front, euro zone retail sales rose 0.2% month-on-month in May and 0.2% annually, slightly below forecast.

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