European markets open and close after a big reversal in US markets.

LONDON (AP) — European markets closed mostly higher on Tuesday in an attempt to recoup Monday’s heavy losses as investors monitored earnings and key monetary policy decisions around the world.

The pan-European Stoxx 600 closed 0.5% higher, with oil and gas stocks adding more than 4% to lead gains as most sectors and major bourses finished in positive territory.

Corporate earnings continued to drive the most significant individual stock price movement in Europe. German commodity company Covestro fell 4.9% after cutting its guidance, while Danish facilities management company ISS gained 13.6% after strong first-quarter results.

The German 10-year bond yield rose above 1% on Tuesday morning for the first time since 2015, just two months after it was below zero. Yields move inversely to prices.

Last week, data showed that euro zone inflation hit a new all-time high of 7.5% in April, increasing pressure on the European Central Bank to raise interest rates in line with the most recent stances. aggressive actions by the US Federal Reserve and the Bank of England.

European markets closed sharply lower the day before, as investors digested weak economic data from China and Germany, and a sudden “flash crash” in Sweden’s OMX 30 index.

The focus this week will be on monetary policy decisions by major central banks, with the US Federal Reserve expected to announce a half percentage point increase in its benchmark interest rate on Wednesday. Market fears have grown as to how aggressive policymakers will have to be to control inflation.

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Australia on Tuesday raised its interest rate for the first time in more than a decade as consumer prices rise.

US stocks rose in early morning trading on Tuesday after a volatile session on Monday. Wall Street is coming off a brutal April, the worst since March 2020 for the S&P 500 and the Dow Jones.

Global investors continue to monitor the war in Ukraine and its geopolitical implications, with EU leaders set to work on a Russian oil embargo this week.

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— CNBC’s Sarah Min contributed to this report.

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