European stock markets rise cautiously at early trade

European stock markets rose cautiously at the opening on Tuesday as investors are still assessing recession risks in the region.

The pan-European Stoxx 600 rose 0.4 percent, with retail stocks soaring 3.4 percent to lead gains as most sectors nudged into positive territory. Oil and gas stocks were the outliers, falling 1.3 percent.

On Monday, European markets ended lower as investors pondered a raft of economic challenges the region is witnessing, with the halted gas supply from Russia dominating market sentiment.

The sharp downward moves for risk assets came after Russia’s state-owned energy giant Gazprom announced the indefinite suspension of gas flows to Europe via the Nord Stream 1 pipeline, citing additional repair requirements. The euro dropped sharply while European gas prices skyrocketed.

The gas flows via Nord Stream 1 will not resume operation until Siemens Energy fixes faulty equipment, Gazprom’s deputy CEO Vitaly Markelov told Reuters on Tuesday.