European Stocks Bounce

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European Stocks Bounce

European Stocks Bounce After Sharp Sell-Off

rebound was seen in the majority of the European stocks on Tuesday. This comes at a time when the EU stocks were sitting at 6-month lows.

The timing of the recovery in the European stocks also coincides with the recovery seen in the Asian markets. But, what's driving the strength in the European stocks? According to some experts, the recently released corporate earnings are the key catalyst for this recovery move.

Stoxx 600 Up By 0.8%

The STOXX 600 gained 0.8% after registering one of its steepest 3-day losses in almost two years. Although the gains are almost negligible, they do hint at a change of pace, which is enough in the current market.

Similarly, the Nikkei is almost up by 9%, making it one of the best markets in Asia. The upside in Nikkei comes after registering one of the steepest daily declines that was only last seen in 1987.

The travel sector was the top gainer which also lifted the whole index higher. The key stock from this sector was InterContinental Hotels Group which announced good results during the Q2.

Similarly, the stocks of Monte dei Paschi di Siena (Italian bank) also surged by 8.2% as the company raised its outlook for profit.

Adecco, another big-name stock, went up by 5% on the announcement that recent hiring trends will also continue in Q3 2024.

Zalando, which is a major online marketplace for fashion also gained 4% during the day. The company announced an 18.5% increase in the operating profits during Q2.

The overall sentiment in the European market was positive and similar to what we see in the Asian markets such as the Nikkei index.

However, the recent upside is nothing but a technical correction as most of these stock markets have yet to recover their losses from earlier.

But, once the central banks around the world start to lower the interest rate, a new upside wave will appear in most of the European markets.

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