European stocks recovered after three consecutive sessions of losses as a global bond selloff eased and investors awaited Friday's U.S. non-farm payrolls report for indications of the Federal Reserve's next policy moves. The pan-European STOXX 600 rose 0.2% to 646.96 by 0810 GMT after reaching a one-month low in the previous session. Germany's DAX gained 0.1%, Spain's index rose 0.5% and France's CAC 40 slipped 0.1%. Soitec jumped 10% after raising its second-quarter 2027 revenue-growth outlook to 50% year-on-year from 30%. Oil prices eased but stayed above $90 a barrel, while euro zone bond yields retreated from multi-year highs. The escalation of the Iran war had pushed oil higher, intensifying concerns about inflation, government debt and tighter monetary policy, with Europe's reliance on energy imports leaving its markets particularly exposed. Ricardo Castillo, head of investments at Mirabaud Group, said elevated energy costs could contribute to the European Central Bank maintaining high rates despite limited growth. A survey showed euro zone services growth slowed to a two-month low in August, although broad-based demand kept overall private-sector activity steady. Traders were nearly certain the ECB would raise borrowing costs to 2.5% next week and deliver two further quarter-point increases by mid-2027. Deutsche Telekom gained 1.7% after reports that Elliott had built a stake, while M&G slipped 0.2% after reporting first-half results. Sofina rose 3.6% after reporting first-half 2026 net-asset-value growth and identifying SpaceX as the largest position among its top private-fund holdings.