European shares extended gains at midday on Tuesday as investors shrugged off falls in the US and Asia overnight and went bargain hunting.
The pan-European Stoxx 600 index was up 1.17% with all major bourses in positive territory. Worries about inflation, the Ukraine war and fears of an economic slowdown in China as the country enforces a zero-Covid policy with harsh lockdowns have spooked investors in days.
“This sense of bearishness is preventing opportunistic investors from scooping up discounted stocks at cheaper prices on the expectation that there is likely to be more pain to come,” said Victoria Scholar, head of investments at Interactive Investor.
“However this morning it looks like there could be some relief for the markets, suggesting yesterday’s sell-off was somewhat overdone.”
In equity news, shares in Swedish Match soared 25%, after US tobacco company Philip Morris International said it is in talks to buy the smaller rival.
French carmaker Renault Group rose 1.4%, as China’s Geely Automobile Holdings agreed to acquire around 34% of Renault Korea Motors for 264 billion won ($206.79m).
Centrica shares rose after the energy services company said it expected full-year adjusted earnings per share to be at the top end of analyst expectations after a strong performance in the first four months of 2022.
