European markets surge as economic challenges assessed

The European markets cautiously surged on Tuesday as investors continued to assess recession risks in the continent.

The pan-European Stoxx 600 added 0.5% by mid-afternoon, with retail stocks climbing 2.8% to lead gains as most sectors nudged into positive territory.

Oil and gas stocks were the most obvious as they were seen slipping 2.1% as Brent crude prices retreated following a modest supply cut from OPEC+ and previously surging gas prices pulled back.

The sharp downward moves for risk assets came after Russia’s state-owned energy giant Gazprom announced that gas flows to Europe via Nord Stream 1 pipeline would be halted indefinitely, citing additional repair requirements. The euro fell sharply while European gas prices soared.