Europe Markets

European stocks close higher after Monday's sharp sell-off; UBS up 5%

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Key Points
  • European stock markets are recovering from a sharp sell-off Monday.
  • Shares of UBS climbed over 5% after the Swiss banking giant beat second-quarter earnings expectations.
  • Bitcoin is also in the spotlight on Tuesday after its price tumbled amid the market turmoil, falling below $30,000 for the first time in nearly a month.

LONDON — European stocks closed higher Tuesday, recovering from a sharp sell-off in the previous session on fears of a Covid-19 resurgence.

The pan-European Stoxx 600 closed up by 0.5%, with basic resources shares climbing 1.5% while the travel and utilities sectors both fell 0.2%.

It comes after a sharp sell-off Monday, when the European blue chip index ended the day down 2.3%, while on Wall Street the Dow Jones Industrial Average tumbled 2.1% to post its worst day since October.

The major U.S. averages rebounded Tuesday, with the Dow gaining 1.7% and the S&P 500 and Nasdaq also in positive territory.

On Monday, concerns about the spread of Covid-19′s delta variant prompted investors around the world to dump equities, especially those directly affected by pandemic restrictions.

New Covid cases are surging in Europe and the U.S. as the delta variant spreads, largely among the young and unvaccinated, or the partially vaccinated. The U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago, according to CDC data

Bitcoin is also in the spotlight on Tuesday after its price tumbled amid the market turmoil, falling below $30,000 for the first time in nearly a month.

In earning news, Swiss banking giant UBS has beaten second-quarter earnings expectations, reporting net profit attributable to shareholders of $2 billion. UBS shares climbed 5.3% in response to the news.

At the top of the Stoxx 600, Swedish industrial manufacturer Alfa Laval jumped 8% after beating profit estimates, while at the bottom of the index, compatriot home appliance company Electrolux fell more than 6.4% after issuing a supply chain warning.

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- CNBC's Ryan Browne, Yun Li and Arjun Kharpal contributed to this market report.