FX.co ★ European Stocks Extend Rebound

European equities finished solidly higher on Tuesday, supported by gains in banks, consumer discretionary names, and automakers as the recent surge in sovereign bond yields took a breather. The Euro STOXX 50 rose 0.5% to 6,274, while the STOXX Europe 600 also advanced 0.5% to 636.6. Long-dated euro-area sovereign yields mostly declined, particularly in higher-debt countries, easing worries that the ECB might be forced to step in to counter market fragmentation. Banks benefited from the improvement in credit markets, with BNP Paribas climbing 2.5%, and UniCredit, Santander, and Deutsche Bank each gaining 1.5%. Intesa Sanpaolo added 1.3%, recovering from Monday’s losses as investors reassessed how a potential acquisition of Banca MPS could affect its future profitability. In contrast, Schneider Electric fell 4.5% after agreeing to acquire US software company PTC in a $22.6 billion deal.