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Oct 5 Reuters European shares regained some poise on Thursday after a threeday selloff, as retreating government bond yields and an overnight slump in oil prices relieved some pressure on equity investors.

The STOXX 600 index was up 0.3 by 0842 GMT, after closing at a sixmonth low on Wednesday.

Global equities took a hit this week as U.S. and European bond yields surged on bets that interest rates will remain higher for longer, with U.S. economy staying resilient and policymakers claiming rates will not fall anytime soon.

Longerdated U.S. Treasury yields, however, eased from 16year highs on Wednesday after data showed U.S. private jobs growth in September was below economists39; expectations.

Investors will closely watch the U.S. monthly nonfarm payrolls report on Friday to gauge if the Federal Reserve will raise interest rates to 5.55.75 in November. The odds of such a move currently stand at 25.

Market participants most likely want to see some weakness in tomorrow39;s U.S. labour market release to counteract the current bear market in bonds, UniCredit analysts noted.

Euro zone bond yields also eased, after Brent crude futures shed more than 5 overnight on uncertain fuel demand outlook. Brent prices recovered slightly on Thursday, to trade at 85.9 per barrel.

The oil gas index slid 0.5, but the travel leisure index jumped 1.9 as the prospect of…