Europe's STOXX 600 edges up in global recovery, earnings relief
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
German industrial orders swell in ray of hope for weak economy
Novo Nordisk logs biggest one-day gain in five months
Bayer shares drop after earnings hit by tough farm market
Monte dei Paschi di Siena up after raising profit outlook
STOXX 600 up 0.3%
Updated at 1600 GMT
By Pranav Kashyap and Ankika Biswas
Aug 6 (Reuters) -European shares rose on Tuesday, mirroring a recovery in global markets after the previous day's mauling, with energy and technology stocks leading the way as a slew of upbeat corporate earnings also lifted sentiment.
The STOXX 600 .STOXX closed 0.3% higher, after logging its steepest three-day decline since June 2022 and closing below the key 500-point mark for a second day on Monday on U.S. recession fears.
The "fear gauge" Euro STOXX volatility index .V2TX also cooled down from its highest level since March 2022 hit on Monday, reflecting an improved investor mood.
Wall Street climbed in volatile trading, as investors looked for bargain hunting, while dovish commentary from Federal Reserve officials also lifted the mood.
Among others, Japan's Nikkei .N225 closed up 10% after its biggest daily sell-off since the 1987 Black Monday crash.
Investor nerves appeared to be soothed after Fed policymakers pushed back against recession concerns, but also warned that the central bank will need to cut rates to avoid such an outcome.
However, Tuesday's market recovery was contained as traders refrained from making big bets, reassessing the impact of the pullback and awaiting fresh bullish catalysts.
Main indexes in Germany .GDAXI, France .FCHI and Spain .IBEX ended the session marginally high to 0.3% down.
Furthermore, data reflected a stronger-than-expected rise in German industrial orders, providing some hope for Europe's largest economy, where recession is back on the cards following a contraction in second quarter.
"The euro zone data do not scream 'rate cut' – the economy is growing at a steady pace and domestic inflation has stabilised at a high level," said Jack Allen-Reynolds, Capital Economics' deputy chief euro zone economist.
"But we suspect most ECB policymakers will judge a cut is justified next month, and recent concerns about the U.S. strengthen their case."
Technology .SX8P was the top sectoral gainer, up 1.7%, led by semiconductor stocks such as ASM International ASMI.AS, ASML ASML.AS and BE Semiconductor BESI.AS.
Heavyweight Novo Nordisk NOVOb.CO also rebounded with a 4.6% jump, its biggest one-day gain in nearly five months, ahead of the drugmaker's quarterly results on Wednesday.
Italian bank Monte dei Paschi di Siena BMPS.MI jumped 9% after raising its profit outlook and dividend payout goal through 2028.
Switzerland's Sonova SOON.S rose 6% after introducing a hearing aid that utilises real-time AI to improve speech clarity from background noise.
Industrial kitchen retailer Rational AG RAAG.DE jumped 7.2% after its results.
Meanwhile, Bayer BAYGn.DE slumped 6% after following weak quarterly adjusted earnings, while Swiss healthcare company Galenica GALE.S fell 4% after "underwhelming" first-half results.
Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Sherry Jacob-Phillips, Varun H K and David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
