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European shares recouped some losses on Tuesday after falling for two straight sessions, with automobiles and mining stocks leading gains early in the session, as government bond yields across the continent eased.

The pan-European STOXX 600 was up 0.6% by 0823 GMT after falling about 1.4% in the last two sessions.

Yields across government bonds edged lower on the day, with the yield on the 10-year bund last at 2.58%.

Automobiles and parts led gains, rising 1.5%, while basic resources advanced 1.1%.

The event of the day will be French Prime Minister Francois Bayrou’s speech which is expected to lay out the contours of a deal to water down pension reforms in return for support from the left on passing a budget. France’s benchmark index CAC 40 jumped 1.1%.

European stocks see off holiday-shortened week lower

JD Sports Fashion tumbled 10.3% after the British sportswear retailer downgraded its profit forecast and warned it was “cautious” in the coming year.

BP fell 2.5% after the energy giant said that lower refining margins would hurt its fourth-quarter profit by $100 million to $300 million.

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