* SAP up 3.5%, top boost to STOXX 600
* German DAX jumps 1.2% for best day in 7 weeks
* Q2 STOXX 600 earnings set to jump 108%
* Global investors await Fed minutes
(New throughout, updates prices, market activity and comments
to close)
By Sruthi Shankar and Susan Mathew
July 7 (Reuters) - European stocks rose on Wednesday as
commodity-linked stocks recovered from sharp falls in the
previous session, while lower bond yields kept supporting highly
valued technology shares.
The pan-European STOXX 600 rose 0.8%, a day after
the index snapped a three-day winning streak as worries about
the global economy led to a bond market rally that pushed U.S.
and euro zone bond yields lower.
Yields slid again on Wednesday, lifting technology stocks
by 1%, but pushing bank stocks down 0.2%.
Barclays in a note said they were adding tech exposure via
software "given their later-cycle investment nature. Valuations
are not cheap, but we expect earnings to be supportive."
Europe's most valuable tech company SAP was the
biggest boost to the STOXX 600, up 3.5%. Traders also pointed to
a double upgrade to "buy" from Bank of America. Germany's DAX
posted its best session in seven weeks, up 1.2%.
As copper and iron ore prices rose, mining stocks
made back 2.3% from Tuesday's 2.5% drop.
Investors were cautious, putting defensive sectors among the
top gainers.
Sliding crude prices weighed on oil & gas companies.
The travel and leisure sector lost the most, down 1.5%
with the World Health Organisation advising against pre-mature
lifting of COVID-19 restrictions.
A rally in beaten-down "value" stocks has helped push the
STOXX 600 to record highs this year, but worries about the Delta
variant of COVID-19 slowing economic recovery have put them
behind "growth" stocks year-to-date.
"Flows are coming back, but the region is still not crowded
and we think improving (economic) growth could last beyond
reopening catch-up," Barcalys said, adding Germany and Italy are
their top picks in the continent.
Investors are awaiting the U.S. Federal Reserve's policy
minutes later in the day, which could shed light on when it
plans to start tapering asset purchases.
Among other notable moves, French state-controlled power
group EDF added 2% after raising its 2021 core earnings
target, given its new estimate for nuclear output in France.
With earnings season set to kick off later in July, analysts
are expecting profits at STOXX 600 companies to jump 108.6% in
the second-quarter versus a year ago, as per Refinitiv IBES
data.
Swiss duty-free retailer Dufry fell after Italy's
Autogrill denied rumours of a potential tie-up between
the companies. Both slipped more than 1.5%.
Dufry was up 1.3% after gaining as much as 5% earlier, while
Autogrill shares were up 1.5%.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak
Dasgupta, Uttaresh.V and David Gregorio)