Euro Stocks Edge Higher Amid Elevated Oil Prices and Interest Rates

European stocks saw a modest gain on Tuesday as oil prices and interest rates remained high. Despite the challenging environment, energy and tech sectors led the way with gains of 1% each.

The Stoxx Europe 600 index rose by 0.2%, while Germany's 10-year bund yield hovered near its highest level since 2011 at around 3.18%. Brent crude prices also ticked up to $87.80 a barrel, keeping inflation concerns in the spotlight.

Company earnings reports still had an impact on stock performance, with Alcon, a Swiss eye-care company, seeing a 5.5% jump after beating expectations and raising its outlook. However, rate-sensitive sectors such as food and beverage and European REITs lagged behind, down 0.8% and 0.2%, respectively.

The Euro Stoxx 50 volatility index rose by 2% to 15.91, still below the level of 20 that often signals turbulent markets. This suggests options traders expect a relatively calm month ahead.