European Markets Stage Cautious Rebound on Lower Oil Prices
The European market saw a cautious rebound on Tuesday, driven by a decline in oil prices and moderate gains in technology stocks. The drop in Brent crude prices to around USD 88 per barrel from USD 95 last week eased concerns about inflation reaccelerating and brought relief to the bond market.
Germany led gains in Europe, with DAX futures up around 0.7%, supported by positive macroeconomic data. German GDP growth in Q2 2026 reached 0.3%, exceeding expectations, and the IFO business climate index rose significantly above expectations to 88.8, its highest level in two years.
Company news also contributed to the market's recovery, with industrials and travel and leisure stocks performing well. Semiconductor makers, such as ASML and Infineon, rebounded ahead of Nvidia's earnings release. However, Volkswagen shares declined around 1% due to concerns over job cuts and restructuring plans.