European markets bounce back over 1% from previous selloff

French CAC 40 increases most with 1.5%

European stock exchanges closed Tuesday higher to bounce back more than 1% from massive losses recorded on previous day.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was up by 4.56 points, or 1%, to close at 458.68.

London’s FTSE 100 gained 77 points, or 1.12%, to 6,981, and Germany’s DAX 30 index rose 216, or 1.43%, to 15,348 points.

The French CAC 40 increased the most by adding 97 points, or 1.5%, to reach 6,552 points.

While Italy’s FTSE MIB gained 305 points, or 1.22%, to 25,353, Spain’s IBEX was up 100 points, or 1.16%, to 8,756 points.

Indices declined between 1.2% and 1.6% on Monday with risks surrounding China’s Evergrande Group.

Worries have been coupled with the US Federal Reserve’s meeting that will conclude Wednesday when the central bank may signal an interest rate hike by late 2022, and begin tapering – the process of reducing accumulating $120 billion monthly assets on its balance sheet – next month.

US indices

After plummeting around 2% on Monday, US indices were in positive territory to regain some of those losses.

The Dow Jones was up 171 points, or 0.5%, to 34,142 at 12.49 a.m. EDT (1649GMT), while the S&P 500 gained 19 points, or 0.44%, to 4,376.

The Nasdaq increased 94 points, or 0.64%, to 14,807.

The VIX volatility index soared to 28.79 on Monday, but the fear index was down 9% to 23.39 at the time.

While the yield on 10-year US Treasury notes gained 0.9% to 1.321%, the dollar index was down 0.1% to 93.19.

Recovery was also seen in precious metals with gold rising 0.7% to $1,776 per ounce and silver adding 1.6% to $22.62

Oil prices were up with Brent crude trading at $74.03 per barrel with a 0.15% gain, while the US benchmark West Texas Intermediate was at $70.19 with a 0.07% increase.


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