European stocks rebound as market stabilizes, corporate earnings boost sentiment

(MENAFN) European stocks made a notable recovery on Tuesday after experiencing significant declines the previous day, driven by a rebound in Asian markets and a series of positive corporate earnings reports. By 0717 GMT, the pan-European STOXX 600 index was up 0.8 percent, recovering from its sharp three-day losing streak that marked the largest drop since June 2022. The index had closed below the 500-point mark for the second consecutive day on Monday, reflecting heightened market volatility.

The rebound in European markets was influenced by a strong performance in Asia, where Japan's Nikkei index surged by 9 percent following a significant one-day drop in the previous session—the largest since 1987. The travel sector emerged as a standout performer in Europe, driven by a 2.1 percent increase in shares of InterContinental Hotels Group, which benefited from robust second-quarter earnings. This uptick in travel-related stocks reflects renewed investor confidence in the sector.

In addition to the travel sector's gains, shares of Zalando, an online clothing retailer, rose by 4 percent after the company reported an impressive 18.5 percent increase in operating profit for the second quarter. The overall positive sentiment in European markets highlights a temporary stabilization following recent downturns, with investors closely monitoring further corporate earnings and economic indicators for additional market direction. 

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