European stocks extend recovery ahead of PMIs; Adidas jumps

(Reuters) – European stocks extended a rebound on Wednesday from a steep selloff earlier this week, with investors awaiting the latest business activity data to see if the economic recovery is stalling as many countries reimpose coronavirus restrictions.

The pan-European STOXX 600 <.STOXX> rose 0.7% by 0712 GMT, with London’s exporter-heavy FTSE 100 <.FTSE> jumping 0.9% as the pound was hammered by fresh UK curbs to tackle a second wave of COVID-19 infections. [.L]

The German DAX <.GDAXI> rose 1%, with Puma and Adidas up over 4% after U.S. sportswear maker Nike reported strong earnings and forecast better-than-expected sales for 2020.

Osram surged 13.5% after Austrian sensor maker ams said it had signed a so-called domination and profit and loss transfer agreement as a key step towards closing out its 4.6 billion euro ($5.4 billion) takeover of the German firm.

Data compiler IHS Markit is set to release its early reading of September business activity for the euro zone and UK later in the day. With a resurgence in COVID-19 cases driving many countries to tighten curbs again, investors are wary it can hurt a fragile economic recovery in the continent.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)