Europe markets from open to close after big reversal in U.S. markets
LONDON — European markets nudged mostly higher on Tuesday, attempting to claw back Monday’s losses, as investors monitor key monetary policy decisions around the world.
It comes after U.S. markets staged a major reversal to start the month on Monday, with the Nasdaq Composite rising 1.63% late in the day, after falling 1.07% earlier, and the S&P 500 increasing 0.57% despite hitting a new year-low in the session.
The pan-European Stoxx 600 climbed 0.6% in early trade, with banks adding 2% to lead gains as most sectors and major bourses entered positive territory.
Corporate earnings continued to drive Europe’s most significant individual share price movement. German raw materials company Covestro fell 6.3% after cutting its guidance while Danish facility management company ISS gained 6.3% after strong first-quarter results.
Germany’s 10-year Bund 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.
European markets closed sharply lower a day earlier as investors digested weak economic data out of China and Germany, and a sudden “flash crash” in Sweden’s OMX 30 index.
Focus will turn this week to monetary policy decisions from major central banks, with the U.S. Federal Reserve expected to announce a half-percentage point increase to its benchmark interest rate on Wednesday. Market fears have been mounting as to how aggressive policymakers will have to be in order to rein in inflation.
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— CNBC’s Sarah Min contributed to this report.