European Stocks Rebound Modestly, Buoyed by Asian Recovery

By Adam Whittaker

European markets followed Asia's climb in early trading as equities rebounded following Monday's slump.

The STOXX Europe 600 rose 0.85%, the U.K.'s FTSE 100 was up 0.4%, France's CAC 40 climbed 0.2%, Germany's DAX gained 0.7%, and Switzerland's SMI rose 0.3%, along with gains on other European bourses.

Asian stocks partially reversed losses experienced on Monday, when economic data from the U.S. raised concerns of a possible recession. The Nikkei Stock Average closed up 10.2% on Tuesday, its best day since 2008 after closing 12.4% down on Monday. South Korea's KOSPI index closed nearly 4% higher.

U.S. futures were also trading higher ahead of market open. NASDAQ Futures were up 1.5%, S&P Futures up 1.2% and the Dow Jones Industrial Average Futures up 0.7%.

Ahead of Tuesday's market open, analysts at Societe Generale said Monday's declines were a healthy correction for European equities and that there was no specific trigger related exclusively to Europe; the selloff was the result of U.S. recession fears and the unwinding of yen carry trades.

Write to Adam Whittaker at [e-mail]

(END) Dow Jones Newswires

08-06-24 0412ET