European stocks rose in early trade today amid renewed M&A speculation as markets shrugged off interest rate worries and broke a three-day losing streak.
By 7.15am, the pan-European FTSEurofirst 300 index was up 0.5 per cent at 1,594.1 after falling 1.6 per cent in the previous session when it closed at its lowest since May 17th. It fell as much as 2.6 per cent this week but is still up 7 per cent so far this year.
The Bank of England's interest rate decision at 11am tops investors' agendas, a day after the European Central Bank raised rates to 4 per cent and showed its readiness to lift rates again.
Benchmark 10-year US Treasury yields briefly pierced above 5 per cent for the first time since mid-August.