© Archyde.com. An illustration of the German DAX index at the Frankfurt Stock Exchange on Monday – Archyde.com
(Archyde.com) – European shares closed higher in choppy trading on Tuesday following a bleak start to the week on fears of a looming energy crisis and recession.
The European index closed up 0.2 percent following losing 0.6 percent in the previous session, as Russia stopped pumping gas through the Nord Stream 1 pipeline to Europe.
The rebound in auto stocks helped the German index rise 0.9 percent following falling more than 2 percent on Monday due to growing fears that Europe’s largest economy is headed for a recession.
Investors have been closely following developments regarding the Nord Stream gas outage, which has raised concerns regarding short stocks in the winter and prompted European Union governments to pass billions in packages to support businesses and protect households from high energy bills.
Numerous opinion polls on Monday showed the Eurozone almost certainly entering a recession as the cost of living crisis and bleak outlook keep consumers cautious regarding spending.
Data this morning showed German industrial orders fell 1.1 percent in July, falling for the sixth month in a row, as the fallout from the war in Ukraine continued.
Volkswagen shares rose 3.7 percent following its decision to launch an initial public offering of its sports brand, Porsche.
Germany’s Delivery Hero jumped 7.7 percent following Morgan Stanley (NYSE:) upgraded the online ready-to-eat food retailer, citing a combination of faster growth and higher profits.
Shares of British retailers Marks & Spencer and JD Sports were boosted by hopes of a support package of energy aid for businesses.
(Prepared by Doaa Muhammad for the Arabic Bulletin)
