European Bourses Rebounding Midday as Traders Bargain-Hunt

European bourses were rebounding midday Wednesday as traders joined the global bargain-hunting rally after recent sharp declines on concerns over the rapidly-spreading omicron variant of the COVID-19 virus. Investors weighed media reports that academic and industry scientists believe existing vaccines will mitigate omicron effects.

Investors also viewed a Wall Street futures market flashing green, and higher closes overnight on Asian exchanges. Financial and oil stocks were leading gainers.

The Eurozone Manufacturing Purchasing Managers Index (PMI) posted at 58.4 in November, up by 0.1 index point from October, IHS Markit reported. Readings above 50 indicate a sector in expansion.

The pan-continental Stoxx Europe 600 Index was up 1.1% mid-session.

The Stoxx Europe 600 Technology Index was up 1.6% and the Stoxx 600 Banks Index was up 2.0%. The Stoxx Europe Oil and Gas Index was up 2.6%.

The Stoxx Europe Food and Beverage Index was up 0.4%, the REITE, a European REIT index, was up 0.3%, and the Stoxx Europe 600 Insurance Index was up 1.9%.

In national market indices, the German DAX rose 1.4%, the FTSE 100 Index in London was up 1.3%, and the CAC 40 in Paris was also up 1.3%. Spain's IBEX 35 inclined by 1.4%.

Yields on benchmark 10-year German bonds were less negative, at minus 0.32%.

Front-month Brent crude oil futures were 4.4% lower at $72.27 per barrel.

The Euro Stoxx 50 volatility index was down 10.4% at 26.93, still indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests expectations for calmer markets.