(Reuters) – Europe’s STOXX 600 index rose on Tuesday, led by automakers and materials stocks after a three-day selloff triggered by fears over global recession, while Italian payments group Nexi topped the benchmark index on strong business outlook.
The continent-wide index was up 0.4% by 0715 GMT. It lost 4.8% in the last three sessions after downbeat data on economic activity in the region and policy tightening by several global central banks deepened fears of a recession.
All European sector indexes rose, with automakers and basic resources climbing nearly 1% each.
Italian shares rose 0.5%, extending a rally after the right-wing coalition led by Georgia Meloni overwhelmingly won the national election.
Italian election results reduced political uncertainty, but coalition policy choices remain unclear, Moody’s said on Monday.
Shares of Nexi gained 6.2% after the payments group said it estimated an excess cash generation of around 2.8 billion euros ($2.70 billion) in 2023-2025 which can be used to pursue M&A opportunities or to return capital to shareholders via buyback and dividends.
Hugo Boss AG fell 2.2% after Deutsche Bank downgraded the German fashion house’s stock to “hold”, citing fading tailwinds.
(Reporting by Devik Jain in Bengaluru; Editing by Sherry Jacob-Phillips)
