European stocks rebound as US bond yields rise

European stocks rebounded strongly on Tuesday, as reassurance from US monetary policy officials about interest rates and a decline in oil prices helped calm investor fears after conflict in the Middle East fueled a rush towards safe-haven assets.

The European STOXX 600 index rose 1 percent by 0709 GMT, after falling 0.3 percent on Monday against the backdrop of the surprise attack launched by the Islamic Resistance Movement (Hamas) on Israel at the beginning of the week.

At the same time, US ten-year Treasury bond yields recorded a significant rise after the holiday on Monday, as Philip Jefferson, Vice Chairman of the Federal Reserve (the US Central Bank), and Lori Logan, President of the Federal Reserve Bank of Dallas, indicated that the rise in long-term bond yields could… The bank announced further interest rate increases.

Oil prices also fell after jumping more than four percent in the previous session.

The European energy sector index fell 0.6 percent, with all other major sub-indices rising.

Among individual stocks, Ellis Company rose 5.8 percent after Brazil-based BWGI Asset Management said it would acquire a six percent stake in the French cleaning services company.