European stocks rebound after trade concerns fuel sell-off

Big 5

Stocks in Europe traded mostly higher on Tuesday morning, rebounding after trade concerns caused a deep sell-off for global markets in the previous session.

The pan-European Stoxx 600 went 0.25 percent higher with almost every sector trading in the black. Basic resources were the top gainers in early trade, up by more than 1 percent.

Across the European benchmark, Eurofins was the top performer, up by more than 6 percent. This followed an announcement that the company had raised its revenue target, after getting an antitrust clearance to purchase Covance. Also, Ingenico rose about 5 percent after Bloomberg reported that the company is on track to get a takeover bid from private equity firms.

At the bottom of the index, Inmarsat was off by about 5 percent after Eutelstat Communication denied it would make a bid for the firm.

Overall, sentiment was recovering from trade worries earlier in the week. Such concerns reached a fresh high Monday following reports that President Donald Trump intends to block some Chinese companies from investing in U.S. technology. Treasury Secretary Steven Mnuchin said the reports were “fake news” and that the measures would actually apply to all countries and not just China. The Dow dropped more than 300 points as a result on Monday.

Meanwhile, Trump criticized the motorcycle company Harley-Davidson for saying it would move production to Europe in order to serve European customers and not be hit with retaliatory EU tariffs.

In corporate news, Uber is due to find out Tuesday if its attempts to overturn a ban to operate in London will be successful.

Source: CNBC