European shares rebounded on Tuesday after a sharp selloff in the previous session as investors responded to positive corporate earnings.
The pan-European Stoxx 600 index rose 1% in early trade after fears over the rapid spread of the Covid Delta variant saw stocks fall 2.3% on Monday. All major regional markets were higher.
“A weak showing in markets globally may provide some buying opportunities on the dip, but for the moment and despite a strong start to the earnings season, sentiment rather than performance is the overriding factor,” said interactive investor head of markets Richard Hunter.
New Covid cases are surging in Europe and the US as the variant spreads, largely among the young and unvaccinated, or the partially vaccinated.
In equity news, miners led the gains after BHP and Anglo American provided upbeat production numbers.
Swiss bank UBS rose 6.4% after it posted a 63% jump in second-quarter net profit, helped by a booming wealth management business.
Among decliners, Sweden’s Volvo fell 4.27% as it warned of further production disruptions and stoppages this year due to chip shortages.
Swedish industrial manufacturer Alfa Laval added 7% after beating profit estimates, while at the bottom of the index, compatriot home appliance company Electrolux fell more than 8% after issuing a supply chain warning.