European markets close higher as confidence picks up; The Swedish party jumps 25%

LONDON (AP) — European stocks rose Tuesday as global markets recovered from a sell-off in recent days, fueled mainly by concerns about inflation and rising interest rates, and the potential for a global recession.

The pan-European Stoxx 600 closed 0.8% higher, with financial services rising 1.6% to lead gains as most sectors and major stocks ended in positive territory.

The positive trading in Europe comes after regional markets fell to two-month lows on Monday as global investors fled risky assets en masse on fears over inflation.

The sell-off was not limited to Europe, as US stocks also fell sharply, leading the S&P 500 to break above the 4,000 level for the first time in more than a year.

“Obviously, there’s a lot of fear in the markets, there’s a lot of volatility. I don’t think we’re at full capitulation levels yet, at least based on the measures we follow.”

Fahad Kamal

Chief Information Officer, Kleinwort Hambros

“A trading session by itself doesn’t say much. Obviously there’s a lot of fear in the markets, there’s a lot of volatility,” Fahad Kamal, chief investment officer at Kleinwort Hambros, told CNBC on Tuesday. .

“I don’t think we’re at fully capitulated levels yet, at least based on the measures we’re following. I don’t think we’re in oversold territory right now.”

Kamal added that markets were “overdue for a correction” after a substantial rally over the last 18 months.

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Gains 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 an all-time high after the nicotine products company confirmed on Monday that it had received a takeover proposal from tobacco giant Philip Morris.

On the data side, Germany’s ZEW institute survey showed economic expectations at -34.3 for May, a considerable improvement from April’s -41.0 and well above forecasts of a -44 reading, 5.

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