European Shares Rebound On Bargain Hunting

European stocks rebounded on Tuesday, as investors sought bargains following four straight days of steep losses on fears of a recession and aggressive policy tightening by the U.S. Federal Reserve.

Germany’s 10-year government bond yield steadied close to an almost 8-year high amid expectations that traders might have gone too far in pricing future ECB rate hikes.

Also helping underpin investor sentiment, the German ZEW headline numbers for May showed that the Economic Sentiment Index improved to -34.3 from -41.0 previous.

Elsewhere, U.K. retail sales declined for the first time since January 2021 in April, new data showed.

The pan European Stoxx 600 climbed 1.2 percent to 422.32 after plunging 2.9 percent on Monday.

The German DAX rallied 1.6 percent, France’s CAC 40 index added 1.2 percent and the U.K.’s FTSE 100 was up 0.9 percent.

Swedish Match shares soared 24 percent. The nicotine products company confirmed a takeover approach from larger U.S. rival Philip Morris.

British precision-measurement specialist Spectris jumped 3.7 percent after it has agreed to buy California-based Dytran Instruments Inc. for $82 million.

3i Infrastructure gained around 1 percent after posting a rise in FY 2022 pretax profit.

Renault was marginally higher. The French car manufacturer said it would soon decide on the future of its operations in Russia due to the ongoing invasion of Ukraine.

Additionally, the company said it would sell just over a third of its Korea unit to China’s Geely Automobile Holdings for roughly $200 million.

Fraport Group shares fell nearly 4 percent. The airport operator reported wider net loss in its first quarter, despite significantly higher revenues.

Agriculture and pharmaceuticals firm Bayer rose half a percent after reporting better-than-expected earnings and revenue for the first quarter.

Copper producer Aurubis declined 3 percent despite lifting its full-year operating profit forecast.

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