European stocks rose Tuesday, with bargain hunters wading back into the market after it suffered its worst selloff in nearly seven years.
The Stoxx Europe 600 SXXP, +3.20% rose 1.4% to 346.89, with all sectors trading higher, led by the basic materials SXPP, +3.54% and oil and gas SXEP, +3.29% groups, which have overall been beaten down over the course of 2015. Among advancers on Tuesday was Antofagasta PLC ANTO, +3.94% with the copper producer up 2.3% after posting a rise in first-half net profit to of $706 million and backed its revised full-year output forecast.
The Stoxx Europe 600 on Monday sank 5.3%, marking its biggest percentage loss since December 2008 as part of a global rout in equities sparked by worries that China’s economy is slowing down more than anticipated.
“The drop in commodity prices during the past year and recent economic and FX weakness in China and other emerging markets will not tip the global economy into recession, in our view,” said Goldman Sachs analysts in a research note Tuesday, adding that they remain underweight in commodities.
“We recognize that the distribution of near-term market risk has shifted,” added Goldman as it lowered its three-month view on European equities to neutral from overweight, and raised U.S. equities to neutral from underweight.
Chinese stocks continued to fall Tuesday, leaving the Shanghai Composite SHCOMP, -7.63% down 7.6%.
In Frankfurt on Tuesday, the DAX 30 DAX, +3.05% gained 1.9% to 9,832.61, following its 4.7% in the previous session.
France’s CAC 40 PX1, +3.46% picked up 2% to 4,471.10 and the FTSE 100 UKX, +2.57% gained 1.5% to 5,989.25. The British benchmark on Monday fell 4.7%, its biggest loss since March 2009.
Monday’s loss pushed the Stoxx 600 down 17% from its all-time high, hit on April 15.