European Shares Rebound After Hitting Six-Month Lows

European shares edged higher after reaching six-month lows, supported by corporate earnings updates and a recovery across global markets. The STOXX 600 index rose by 0.4%, while Japan's Nikkei and Asian markets also showed gains. Investors remained cautious, awaiting further commentary from central bank officials.

European shares edged higher on Tuesday following recent six-month lows, buoyed in part by favorable corporate earnings updates and a global market recovery.

The STOXX 600 gained 0.4% by 0838 GMT, recovering after its sharpest three-day decline since June 2022 and dipping below the 500-points mark earlier. Volatility indicators like the Euro STOXX volatility index cooled to 27.8 points from a high of 40.8.

Japan's Nikkei surged 10%, rebounding from its worst single-day drop since 1987. Likewise, other Asian markets and Wall Street futures showed positive momentum. Investor confidence improved after Federal Reserve officials downplayed recession fears, although traders remained cautious and sought further catalysts to sustain the rally.