European Shares Rebound as Bond Yields Ease

European shares bounced back after two days of losses, with car and mining stocks leading the recovery as government bond yields decreased. The STOXX 600 index rose, spurred by gains in automobiles and basic resources ahead of key political developments in France. Notably, JD Sports and BP saw declines due to profit warnings.

European stock markets showed a recovery on Tuesday, recovering some ground lost over two consecutive sessions. The early trading session was marked by noteworthy gains in automobile and mining sectors, prompted by a decline in government bond yields across the continent.

The STOXX 600 index, a key barometer for pan-European stocks, rose by 0.6% after a cumulative fall of 1.4% in earlier sessions. Government bond yields saw a downward trend, with Germany's 10-year bund yield settling at 2.58%, offering some relief to investors.

Automobiles and parts registered a significant uptick of 1.5%, with basic resources following closely behind at a 1.1% increase. Meanwhile, in corporate developments, JD Sports Fashion saw a sharp drop of over 10% after lowering its profit forecast amid a cautious outlook for the upcoming year. BP reported a 2.5% decline, attributing the drop to anticipated impacts on fourth-quarter profits due to narrowing refining margins.

(With inputs from agencies.)