European markets climb as global stocks look for rebound; Swedish Match up 24%

LONDON — European stocks advanced on Tuesday as global markets looked to rebound from a broad sell-off in recent days, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession.

The pan-European Stoxx 600 added 0.9% in early trade, with construction and material stocks climbing 2.3% to lead gains as most sectors and major bourses entered positive territory. Health care stocks dropped 0.5%.

The positive trade in Europe comes after regional markets fell to two-month lows on Monday as global investors fled risk assets in mass owing to fears over inflation.

The sell-off was not confined to Europe, with US stocks also falling sharply, pushing the S&P 500 to breach the 4,000 level for the first time in more than a year.

Monday’s moves came as Wall Street experienced an erratic last week, with eye-popping day-to-day swings as investors weighed the prospects of rising interest rates against the potential of slower economic growth.

Stock picks and investing trends from CNBC Pro:

Earnings in Europe on Tuesday came from Bayer, Munich Re, Pirelli and Salvatore Ferragamo.

In terms of individual share price movement, Swedish Match surged 24% to a record high after the nicotine products company confirmed on Monday that it had received a takeover approach from tobacco giant Philip Morris.

On the data front, Germany’s ZEW institute is set to publish its economic sentiment index for May.


Leave a Comment