European shares rebound after six-month lows

European shares inched higher on Tuesday following six-month lows recorded in the previous session, driven by a global market recovery and corporate earnings updates.

The STOXX 600 rose 0.4 per cent to 500 points after a steep three-day decline and closing below this key level for two consecutive days.

The Euro STOXX volatility index decreased to 27.8 points, down from 40.8, its highest level since March 2022. In Asia, Japan’s Nikkei rebounded with a 10 per cent gain after its worst single-day decline since 1987, and other Asian indexes also saw gains.

On Wall Street, S&P 500 futures increased by 1 per cent, and Nasdaq futures rose by 1.4 per cent. Federal Reserve comments helped soothe investor nerves, with Fed San Francisco President Mary Daly expressing confidence in reaching the 2 per cent inflation target.

Despite these improvements, market participants remained cautious, awaiting new catalysts. Technology shares advanced 1.2 per cent, and banks gained 1 per cent, with Italian bank Monte dei Paschi di Siena up 8.4 per cent after raising its profit outlook.

Adecco rose nearly 5 per cent despite ongoing bleak hiring trends; Zalando gained 4 per cent following an 18.5 per cent increase in its second-quarter operating profit; and Abrdn improved by 3.7 per cent despite a modest dip in assets under management.

Attribution: Reuters