LONDON — European stocks rose on Tuesday, continuing a rally seen earlier in the week.
The pan-European Stoxx 600 index added 0.8% in early trade, with chemical stocks climbing 1.6% to lead the gains as nearly all sectors and major exchanges moved into positive territory.
The positive opening for Europe comes as global markets appear to be staging a comeback rally after a tumultuous week last week.
Asia-Pacific markets were mostly buoyant overnight and bitcoin continued its recent rebound while US equity futures also rose (US markets were closed on Monday for the 16 June).
The rebound in positive sentiment comes after turmoil in the global market as investors weighed the prospect of more aggressive Federal Reserve rate hikes and growing risks of recession.
Last week there was a flurry of central bank action, with the Fed raising its key rate by 75 basis points, its biggest hike since 1994. The Bank of England also implemented its fifth consecutive rate hike, surprised the Swiss National Bank. markets with an increase of 50 basis points, and the European Central Bank also announced its intention to create a new tool to deal with the risk of fragmentation of the euro zone.
In terms of individual stock price movement, Leonardo soared more than 7% to top the Stoxx 600 in early trading after the Italian aerospace and defense company announced that its electronics unit American DRS had accepted the acquisition of RADA Electronic Industries in Israel.
At the bottom of the index, Swedish property company SBB lost 6%.