The European index rose on Tuesday, supported by the rise in interest rate-sensitive real estate and technology stocks, after a three-day sell-off in the wake of the collapse of the Silicon Valley bank that caused turmoil in the banking sector worldwide.
The pan-European STOXX 600 was up 0.1% by 0813 GMT, after falling 2.4% the day before, in the worst sell-off this year.
The real estate and technology sectors rose 1.1 percent and 0.4 percent, respectively, as investors flocked to sectors that tend to benefit from lower interest rates.
European bond yields continued to decline as investors bet that the European Central Bank would ease monetary policy tightening.
The European banking stock index fell 1.1 percent, after posting its biggest loss in more than a year on Monday.
Credit Suisse fell 1.3 percent, and HSBC fell 1.8 percent, extending its losses for the fourth consecutive day.
HSBC bought a unit of Silicon Valley Bank on Monday, saving the unit, which is a major lender to technology start-ups in Britain.