European markets close higher as sentiment rebounds; Swedish Match jumps 25%
LONDON — European stocks advanced on Tuesday as global markets rebounded 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
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE | VOLUME |
|---|---|---|---|---|---|---|
|
.FTSE
|
FTSE 100 | *FTSE | 7243.22 | 26.64 | 0.37 | 919988529 |
|
.GDAXI
|
DAX | *DAX | 13534.74 | 154.07 | 1.15 | 84927931 |
|
.FCHI
|
CAC 40 Index | CAC | 6116.91 | 30.89 | 0.51 | 90241996 |
The pan-European Stoxx 600 closed higher by 0.8%, with financial services climbing 1.6% to lead gains as most sectors and major bourses finished in positive territory
The positive trade in Europe comes after regional markets fell to two-month lows on Monday as global investors fled risk assets en masse owing to fears over inflation
The sell-off was not confined to Europe, with U.S. stocks also falling sharply, pushing the S&P 500 to breach the 4,000 level for the first time in more than a year
Overnight, most Asia-Pacific markets fell, with tech leading declines after the heavy losses overnight on Wall Street. U.S. stocks dipped again on Tuesday as the major averages struggled to recover from three days of heavy selling
“One trading session in itself, it doesn’t tell you a whole lot. Obviously, there’s plenty of fear in the markets, there is a huge amount of volatility,” Fahad Kamal, chief investment officer at Kleinwort Hambros, told CNBC on Tuesday
“I don’t think we’re quite at levels of full on capitulation yet, at least by the measures that we follow. I don’t think we’re quite into oversold territory right now.
Kamal added that the markets were “overdue a correction” following a substantial rally over the past 18 months
Earnings in Europe on Tuesday came from Bayer, Munich Re, Pirelli and Salvatore Ferragamo
In terms of individual share price movement, Swedish Match surged 25% 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 survey showed economic expectations at -34.3 for May, a considerable improvement on April’s -41.0 and well ahead of forecasts for a -44.5 reading
