On Tuesday, Europe’s STOXX 600 index jumped, led by automakers and travel stocks, following a three-day sell-off triggered by global recession fears. Italian payments group Nexi, on the other hand, topped the benchmark index on a strong business outlook.

The continent-wide index was up 1.2 per cent. The index lost 4.8 per cent in the last three sessions after downbeat data on regional economic activity and policy tightening by several global central banks deepened fears of a recession.

On Tuesday, Euro zone government bond yields touched new highs as investors positioned for more interest rate hikes. The UK’s ‘mini budget’ impact continued to resonate around financial markets.

Goldman Sachs (NYSE: GS) expects the European Central Bank to raise rates by 75 basis points at its next two meetings. The ECB has already hiked its key rate by 125 basis points to 0.75 per cent, the fastest pace of rate hikes in its history.

The STOXX 600 fell 5.2 per cent this month, set for its second straight monthly loss, as Europe grapples with energy and the cost-of-living crises amid the Russia-Ukraine war hampering gas flows and hawkish central bank moves. All European sector indexes climbed, with automakers and travel ascending more than 2 per cent each.
Shares of Nexi ascended 7.5 per cent after the company estimated an excess cash generation of around 2.8 billion euros (USD 2.70 billion) in 2023.
Hugo Boss AG declined 0.8 per cent after Deutsche Bank downgraded the German fashion house’s stock to ‘hold, citing ‘fading tailwinds’.