Europe: Banks, Infineon help stocks buck global gloom

[BENGALURU] European stocks edged higher on Tuesday, as rising bank stocks and an encouraging earnings update from German chipmaker Infineon calmed nerves following a tech-fuelled selloff on Wall Street.

The pan-European Stoxx 600 index gained 0.5 per cent by 7.11am GMT, after closing at its lowest level since Jul 21 in the previous session.

Investors dumped Big Tech and other US growth stocks in the face of rising Treasury yields on Monday, while Asian stocks fell to their lowest in a nearly a year as sentiment remained fragile over concerns about slowing growth and rising inflation.

In Europe, rate-sensitive banking stocks rose 0.9 per cent, while automakers slipped 0.2 per cent.

Infineon Technologies gained 1.9 per cent after it confirmed its 2021 revenue and said it expects results to rise further next year as demand for power chips for cars, datacenters and renewable power generation soars.

British baker and fast-food chain Greggs climbed 4.1 per cent after it raised its full-year profit outlook despite staffing and supply chain disruption.

REUTERS