European shares close higher, rebound from 2-month lows

European shares rose from two-month lows on Tuesday, as bargain hunters returned to buy battered shares after a sharp sell-off amid concerns about a sharp slowdown in global economic growth.

The pan-European STOXX 600 index closed up 0.68% at 420.29 points, with almost all sectors in positive territory.

Global equities have been hurting in May, with high-growth stocks being hit by fears that major central banks will aggressively raise interest rates to curb inflation. On Wall Street, the Nasdaq technology index fell more than 4% in the previous session.

The STOXX 600 tumbled 6.7% in May as Covid-19 lockdowns in China, the war in Ukraine and concerns over faster interest rate hikes overshadow a promising quarterly earnings season.

European Central Bank officials have also become more vocal about the quicker normalization of monetary policy as inflation hits record highs in the euro zone.

• In London, the Financial Times index advanced 0.37%, to 7,243.22 points;
• In Frankfurt, the DAX index rose 1.15% to 13,534.74 points;
• In Paris, the CAC-40 index gained 0.51% to 6,116.91 points;
• In Milan, the Ftse/Mib index appreciated by 1.04%, at 23,069.78 points;
• In Madrid, the Ibex-35 index stood at 8,139.20 points;
• In Lisbon, the PSI20 index rose by 1.12%, to 5,721.02 points.