European stocks up; Positive Corporate News Boosts Sentiment By

© Reuters.

By Peter Nurse – European stock markets traded higher on Tuesday, rebounding from a broad sell-off as investors search for bargains, although the combination of rising interest rates and slowing economic growth continues to cause concern.

As of 04:10 ET (0810 GMT), Germany was trading down 1.5%, France 1% and Britain 0.7%.

European markets are trying to rebound on Tuesday after major regional indexes all closed down more than 2% on Monday, with the pan-European index falling to two-month lows. These losses followed the weak global trend as central banks began to aggressively raise interest rates to fight inflation, sparking growing fears of recession.

Some positive corporate news helped the tone, with Bayer (ETR:) stock rising 0.2% after the German agriculture and pharmaceutical company took another step on the road to recovery. recovery on Tuesday, posting a strong first quarter, driven by a revived consumer healthcare segment and a crop science business buoyed by soaring agricultural commodity prices.

Swedish game (ST:) Shares soared 25% after the nicotine products company confirmed an approach to take over its biggest US rival Philip Morris (NYSE:) as the Marlboro maker seeks to expand its options smokeless.

Renault (EPA:) the stock rose 0.7% after the French automaker set targets for expanding its Mobilize car-sharing business as well as closer cooperation with Chinese car giant Geely Automobile Holdings (HK:), which buys a 34% stake in the Korean company of Renault Unity.

The tone was helped by stronger than expected data for March, climbing 3.0% on the year, down slightly from the revised 3.4% growth seen the previous month.

However, more recent data showed UK retail sales fell 0.3% in April from a year earlier, the first drop since January 2021 when the country was in lockdown, according to an investigation closely watched by the British Retail Consortium.

Attention now turns to the closely watched Germany release later in the session, which is expected to have fallen again in April from a level that was already the lowest since the pandemic began in 2020.

Russia’s invasion of Ukraine remains another source of tension in the market. Russian President Vladimir Putin remained silent on escalation plans in Ukraine on Monday as he marked the Soviet Union’s victory over Nazi Germany in World War II, but the fighting continues.

Oil prices edged higher on Tuesday, rebounding from declines in the previous session as it looked like the European Union would soften its stance on a phased Russian oil embargo as countries most dependent on Russian energy, such as landlocked Hungary, Slovakia and the Czech Republic, have sought exemptions.

The market was boosted last week after the European Commission proposed a deal to eventually ban Russian oil, but the proposal requires the approval of all 27 EU countries, which has proven difficult until now.

As of 3:10 a.m. ET, futures were trading up 0.5% at $103.54 a barrel, while the contract was up 0.3% at $106.23. Both benchmarks posted their biggest daily percentage decline since March on Monday, down 5% to 6%.

Additionally, it traded largely at $1,858.30/oz, while trading up 0.1% at 1.0568.

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