LONDON — European stocks closed higher on Tuesday after recovering from US market jitters at the end of last week.
The pan-European Stoxx 600 ended the session up around 0.7%, led by a 3.1% gain for auto stocks.
Global markets appeared to stabilize throughout the European trading session, ignoring the impact of a US hedge fund default that hit global banking stocks on Monday.
However, U.S. stocks fell on Tuesday despite the Dow Jones Industrial Average rising to a new high on Monday, as the benchmark 10-year U.S. Treasury yield began to soar again.
“Treasury sales are increasingly driven by the tenors most sensitive to Fed rate policy towards the front of the curve. The 5-year point in particular has underperformed the long-term in the bearish and bullish movements of recent times,” said James Athey, chief investment officer at Aberdeen Standard Investments.
“All of this suggests that we are approaching end-of-cycle momentum. Positive growth and inflation surprises will see the market test the Fed’s resolve and flatten the curve. This has the potential to be quite destabilizing. for markets.
On the data front, euro zone economic sentiment jumped far more than expected in March, new survey data showed on Tuesday, rising to 101 points from 93.4 in February. Analysts had expected a modest rise to 96 points.
In individual stock news, shares of Siemens Gamesa gained 5.8% after the renewable energy company signed an agreement with Repsol to install four wind farms in Spain. German biotech company Evotec also gained 5.2%.
Victrex shares soared 5.2% after Citigroup raised its price target for the British polymer stock, while Exane BNP Paribas raised it to “outperform” from “neutral”.
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– CNBC.com staff contributed to this market report.