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06/08/24
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European Shares Inch Higher in Global Recovery
On Tuesday, European shares were higher, reflecting a recovery in global markets after the prior day’s rout, with technology and energy stocks leading the way while several upbeat corporate earnings also bolstered sentiment.
The STOXX 600 closed up 0.3%, after recording its steepest 3-day drop since June 2022 and closing at lower than the key 500-point level for the second day on Monday on fears about a U.S. recession.
The Euro STOXX volatility index also eased from its highest level since Mar. 2022 reached on Monday, indicating investor’s mood had improved.
Wall Street rose in volatile trading, as investors looked for bargains, while the mood was also lifted by dovish commentary by Fed officials.
Japan’s Nikkei closed 10% higher after its largest daily sell-off since the Black Monday crash in 1987.
Investor nerves seemed to be soothed after Fed policymakers pushed back against recession worries but added that the central bank would have to cut rates to avoid that outcome.
Tuesday’s market recovery was however limited as traders were not willing to make big bets, reevaluating the effect of the pullback and waiting for new bullish catalysts.
Spain, France, and Germany’s main indexes ended the session slightly higher.
Data also showed a stronger-than-expected increase in German industrial orders, providing some hope for Europe’s biggest economy.
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