Easy Trading Tips – European stock markets recovered from 14-month lows on Tuesday, bouncing back after four consecutive days of heavy losses. However, investor sentiment remained fragile amid ongoing concerns over trade tensions and tariff developments.
The pan-European STOXX 600 index rose by 1.1% as of 0748 GMT, following a 12.1% drop over the past four sessions, driven by fears of a potential global recession triggered by escalating trade conflicts. By the close on Monday, the index had fallen 17.9% from its all-time high set on March 3.
Germany’s major index also saw a 1.1% gain, as it narrowly avoided confirming a bear market in the previous session.
Investors flocked to defense stocks, the top-performing sector this year, pushing the index up by 3.3%. Meanwhile, shares in the banking sector, hit by concerns over slower growth, climbed 1%.
Chip equipment manufacturer ASML from the Netherlands and German engineering giant Siemens saw notable gains, rising 3.9% and 3.6%, respectively, providing strong support to the STOXX 600.
Despite the positive movement, Fiona Cincotta, senior market analyst at City Index, cautioned that the bounce was likely to be short-lived. “At this stage, it’s more likely a temporary rebound rather than a sustained recovery, as the fundamental issues driving the selloff have yet to be addressed.”
As global trade tensions continue to heat up, China rejected U.S. demands, labeling them “blackmail,” and the trade conflict between the two nations showed no signs of easing. The European Commission responded with a proposal for 25% counter-tariffs on a range of U.S. goods, further exacerbating the strain on the global economy.
The European Union is also preparing for additional tariffs, with a 20% tax on a range of U.S. products set to take effect on Wednesday. European finance ministers will convene later this week to address the economic fallout of U.S. tariffs.
Amid these uncertainties, Wall Street ended Monday’s session largely unchanged after a volatile day. An erroneous report suggesting a temporary pause on U.S. tariffs briefly sent the S&P 500 soaring 5.6%, underscoring the heightened sensitivity of markets to trade news.
In corporate news, German chipmaker Infineon Technologies saw a 0.9% drop after announcing its plan to acquire Marvell Technology’s automotive ethernet business for $2.5 billion in cash, aiming to expand its microcontroller offerings.