European stocks rebounded sharply on Tuesday, as dovish comments from U.S. Federal Reserve policymakers and easing oil prices helped ease investor nerves after conflict in the Middle East had sparked a rush to safe assets.
The continent-wide STOXX 600 index rose 1.0% by 0709 GMT, after Monday’s 0.3% fall sparked by a surprise attack on Israel by Hamas over the weekend.
European stocks slip amid ME conflict jitters
Meanwhile, the 10-year U.S. Treasuries rallied sharply following a holiday on Monday as Fed Vice Chair Philip Jefferson and Dallas Fed president Lorie Logan noted that the recent run-up in yields might reduce the need for further interest rate hikes.
Oil prices also eased after jumping more than 4% in the previous session.
Europe’s energy sector dipped 0.6% but all the other major subsectors were trading higher.
Among individual stocks, Elis rose 5.8% after Brazil-based asset manager BWGI said it would acquire 6% stake in the French cleaning services company.
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