European stocks rebounded Tuesday, led by the struggling technology sector.
Still down 6% for the year, the Stoxx Europe 600 technology sector
XX:SX8P
advanced by 2%. Cloud communications firm Sinch
SINCH,
jumped 9%, and systems integration consultant Reply
REY,
rose 6%. Prosus
PRX,
the investment company holding nearly a third of China’s Tencent, rose 4%.
Growth stocks have struggled this year on concerns over rising interest rates. While the focus is on the big climb in yields on the 10-year Treasury
TMUBMUSD10Y,
the German bund
TMBMKDE-10Y,
of similar maturity is on the verge of turning positive.
Nokia
NOKIA,
added 1% as the telecom equipment maker said venture fund investments would help its margins exceed guidance, even as its underlying business performed largely as expected.
While tech stocks enjoyed a reversal, banks
SX7P,
and automakers
SXAP,
were flat following a year of outperformance.
The broader Stoxx Europe 600
SXXP,
added 0.9%
The German DAX
DAX,
and French CAC 40
PX1,
each rose more than 1%, while the financials and energy dominated FTSE 100
UKX,
added 0.6%.
