Yahoo Finance European stocks rebound despite new China losses
European stocks rebounded Tuesday in early deals, despite another rampant sell-off in China, as investors fished for bargain stocks after heavy losses the previous day.
London's benchmark FTSE 100 index of top companies won 1.64 percent to 5,995.50 points, Frankfurt's DAX 30 added 1.69 percent to 9,810.40 and Paris's CAC 40 gained 1.57 percent to 4,452.30.
"European equity markets are showing hesitant signs of trying to stage an early rebound after yesterday's Black Monday," said analyst Markus Huber at brokerage Peregrine & Black.
"However, with Chinese markets getting hit once again today and overall confidence in markets being fairly low it needs to be seen it if the current bounce is only of temporary nature or if we have finally seen indeed the lows of the current down-move."
Shanghai stocks plunged by 7.63 percent on Tuesday, as concerns about China's weak economy pressured shares the day after their worst daily fall since 2007 sparked panic selling around the world.
Global equities were hammered Monday, with US and European markets tumbling after a near 8.50 percent slump in Shanghai sent investors heading for the exits.
Asian shares were mixed on Tuesday after a see-saw session, with Tokyo and Hong Kong diving as Shanghai extended its worst rout in almost 20 years, while other regional markets bounced into positive territory.
Back in London, the top gainer was British insurance company Royal & Sun Alliance (RSA) after it revealed a £5.6 billion ($8.8 billion, 7.7 billion euro) takeover approach from Zurich Insurance.
RSA announced in a statement that Zurich has made an informal bid of 550 pence per share, adding that the pair are now in talks.
The news sent RSA's share price soaring 5.05 percent to 520 pence, helping push the London stock market higher in early trade.
"The FTSE 100 has bounced out of the starting blocks as Tuesday's session gets underway with some evidence of bargain hunters jumping in although the gains are looking somewhat tempered," added Trustnet Direct analyst Tony Cross.
