LONDON – European equities rose on Tuesday as global markets appeared to pick up after a broad sell-off in recent days, mainly due to concerns about inflation and rising interest rates – and the potential for a global recession.
The pan-European Stoxx 600 increased by 0.9% in early trading, with construction and materials stocks climbing 2.3% to lead the rise as most sectors and major stock markets entered positive territory. Health care fell 0.5 percent.
The positive trade in Europe comes after regional markets fell to a two-month low on Monday when global investors fled risky assets en masse due to fears of inflation.
Sales were not limited to Europe, with US stocks also falling sharply, pushing the S&P 500 to break the 4000 level for the first time in more than a year.
Monday̵[ads1]7;s move came when Wall Street experienced an erratic last week, with conspicuous fluctuations from day to day as investors weighed the prospect of rising interest rates against the potential for lower economic growth.
Revenues in Europe on Tuesday came from Bayer, Munich Re, Pirelli and Salvatore Ferragamo.
In terms of individual stock price movements, Swedish Match rose 24% to a record high after the nicotine product company on Monday confirmed that it had received a takeover from the tobacco giant Philip Morris.
On the data front, the German ZEW Institute is set to publish its economic sentiment index for May.