Stocks in Europe rebounded on Tuesday along with US equity futures, and Treasuries snapped a four-day selloff as sentiment steadied after a market rout driven by expectations of sharper Federal Reserve interest-rate hikes to fight inflation.
The Stoxx Europe 600 index climbed about 0.9% at the open, with banks and technology shares leading a broad-based advance. S&P 500 Nasdaq 100 contracts jumped more than 1%, signaling some relief after Monday’s rout that erased $1.3 trillion in market capitalization. The dollar dipped from a two-year high and Treasuries made gains, though the yield curve remained inverted, underscoring worries about an economic downturn sparked by tighter monetary policy.