(Bloomberg) -- European stocks fluctuated Tuesday, ending up moderately in the green, suggesting any rebound from this month’s selloff remained fragile as investors worried about the outlook for US economic growth.
The Stoxx Europe 600 Index was up 0.3% by the close in London, after moving between gains and losses and rising as much as 1% in early trading. Technology outperformed, tracking an advance in the Nasdaq 100 benchmark, while real estate and auto were the biggest decliners. The European benchmark is down by 5.7% so far in August.
Economic data out of the continent was reassuring, with German factory orders rising in June — snapping a five-month slump for Europe’s largest economy, while UK construction output grew at the fastest pace in more than two years.
Bayer AG reversed course, slumping 6% even as its sales beat estimates for the quarter, aided by strong demand for new cancer and kidney medicines. Zalando SE also fell despite reporting a return to sales growth. Adecco Group AG climbed after the Swiss staffing company’s revenue was viewed as surpassing the trend at peers.
European shares fell to a six-month low Monday, as US technology stocks drove a global rout following signs of a slowdown in the world’s largest economy. While the European Central Bank and the Bank of England have cut rates, the Federal Reserve has held steady so far, raising questions about whether it’s been too slow to act and prevent a recession.
“The big question is whether this is a growth scare or whether it would morph into a recession, and in our view that’s still an open question,” said Frederique Carrier, head of investment strategy at RBC Wealth Management. “We’ve been positioned quite cautiously and haven’t been buying into the dip.”
Sentiment is “still relatively fragile,” Carrier added. “After such a strong downward move, a lot of positions have been unwound. We have to look at what the next set of economic data tells us. That will dictate how the market reacts going forward.”
Investors have also watched the corporate earnings season for clues on the health of Europe Inc. Data compiled by Bloomberg Intelligence show MSCI Europe companies are on track to post a 2.9% year-on-year increase in profits, above the 0.4% that analysts had expected.
For more on equity markets:
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- US Stock Futures Bounce Back After Three-Day Global Selloff
- Selling From the Beach: The London Rush
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--With assistance from Michael Msika.
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