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* Sales of luxury goods set to rise at least 5% this year -
* Germany risks recession as Russian gas crisis deepens
* EasyJet slides as Spain cabin crew to go on strike
* Spain's IBEX index slips as power utilities weigh
June 21 (Reuters) - European equities rose for a third
straight session on Tuesday, lifted by chemical and
resource-linked sectors, as last week's brutal selloff on
recession fears attracted bargain hunters.
The pan-European STOXX 600 index advanced 0.4%,
after hitting a more than one-year low last week.
Miners gained 1.3% after touching December 2021 lows
in the previous session, while oil and gas stocks rose
1.1% as crude prices climbed on tight supply.
Boosting chemical stocks, French industrial gas
company Air Liquide rose 3.1% after striking its
largest power purchase deal with Swedish utility Vattenfall.
Among other top boosts were luxury stocks following a
bullish report from Bain. The consultancy said sales of luxury
goods were set to rise at least 5% this year as shoppers in the
United States and Europe continued to snap up high-end watches,
jewellery and shoes.
Still, growth worries lingered after an industry body warned
that Germany - the region's economic powerhouse - faces certain
recession if already faltering Russian gas supplies stop
completely. Italy said it would consider offering financial
backing to help companies refill gas storage to avoid a deeper
crisis in winter.
"With economic headwinds in the Eurozone continuing to grow,
we advise investors to focus on the defensive parts of the
equity market, such as healthcare, along with value sectors,"
UBS said in a client note.
The European benchmark shed 4.6% last week, its worst weekly
performance since early March, after interest rate hikes in the
United States, Switzerland and Britain fuelled fears that
aggressive tightening by major central banks would spark a
The European Central Bank has reaffirmed plans to raise the
ECB's interest rates twice this summer.
"When we think of the weak equity sentiment in response to
hawkish central banks and weaker growth picture, not a lot has
changed from last week," said Karim Chedid, head of investment
strategy for iShares EMEA at BlackRock.
"I do question how long this reprieve can last."
Focus will be on Federal Reserve Chairman Jerome Powell's
testimony before the Senate and the House, as well as European
business activity and UK inflation data later this week.
British airline easyJet slumped 6.3% as its
Spain-based cabin crew plan to go on strike for nine days to
demand higher pay.
Spanish power utilities Iberdrola, Endesa
and Naturgy fell about 3% each on news the country's
government was readying a new tax on electricity utilities'
profits. The broader IBEX index underperformed, down
(Reporting by Sruthi Shankar and Susan Mathew in Bengaluru;
Editing by Subhranshu Sahu, Anil D'Silva and Sriraj Kalluvila)