European stocks stabilize after an inflation-fuelled selloff

Early gains were broad-based, with battered banks, travel & leisure, and technology stocks up between 1.1% and 1.8%. Wall Street's top share index confirmed it is in a bear market on Monday on growing fears that the expected aggressive interest rate hikes by the U.S. Federal Reserve would push the economy into a recession.

European equities rose almost 1% on Tuesday as investors bought into beaten-down shares following a bruising selloff in the previous session on worries over aggressive U.S. interest rate hikes and a potential recession.

The continent-wide STOXX 600 index rose 0.9% by 0705 GMT after sliding 2.4% to over three-month lows on Monday. Early gains were broad-based, with battered banks, travel & leisure, and technology stocks up between 1.1% and 1.8%.

Wall Street's top share index confirmed it is in a bear market on Monday on growing fears that the expected aggressive interest rate hikes by the U.S. Federal Reserve would push the economy into a recession. Among single stocks, German business software group SAP gained 1.5% after U.S. firm Oracle Corp posted upbeat quarterly results, helped by soaring demand for its cloud products.

Atos slid 5.8% after the French IT company said Chief Executive Officer Rodolphe Belmer, who started his job only in January, will quit following weeks of reports of deep divisions with the board over strategy.

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