European shares clawed back some ground on Tuesday after four days of losses, although investor sentiment remained fragile over concerns about a softening global economy, uncertainty over Britain's exit from the European Union and a U.S recession.
The pan-region STOXX 600 index edged 0.4 percent higher, following a 2.6 percent drop in the past four days that sent the benchmark to a 12-day low. All major bourses rose, led by Paris and London's FTSE 100, with Frankfurt's DAX bringing up the rear.
Grim German and US factory data on Friday rekindled worries over global growth and, along with a dovish pivot by the Federal Reserve, led yields on US three-month bills rising above 10-year Treasury yields, an inversion seen as a reliable indicator that a recession is likely in one to two years.
US 10-year Treasury yields recovered slightly from 2017 lows, but German 10-year bund yields remained below zero, ensuring uncertainty despite the gains in equities.
"Looks like a little bit of a bounce back after last week, but uncertainty remains regarding the Brexit vote in the coming week," said Jasper Lawler, head of research at London Capital Group.
"Certainly global growth is at the front and center of what's guiding markets at the moment, particularly through the bond markets. DAX is underperforming more broadly is because it is also a big proxy for global demand."
German consumer morale deteriorated unexpectedly heading into April, a survey showed on Tuesday, suggesting household spending could weaken in the second quarter.
While a weaker pound helped British stocks gains, Dublin stocks, typically sensitive to Brexit news, slipped 0.7 percent.
British lawmakers on Tuesday wrested control of the parliamentary agenda from the government for a day in a highly unusual bid to find a way through the Brexit impasse after Prime Minister Theresa May's EU divorce deal was rejected again.
Lawmakers will vote on a range of Brexit options on Wednesday, giving parliament a chance to indicate whether it can agree on a deal with closer ties to Brussels before trying to push the government in that direction.
"The latest news slightly increases the chances of a longer delay or potentially a second referendum ... and because these votes are coming this week with a whole host of new information to digest, investors are basically just sitting on their hands and not taking trades to delays and Brexit news," Lawler said.
Nearly three years after the 2016 EU membership referendum, and four days before Britain was supposed to leave the bloc, it remains unclear how, when or even if Brexit will take place, with parliament and the nation still bitterly divided.
Leading gains on the STOXX was ConvaTec Group Plc's 7 percent rise after Swedish business daily Dagens Industri said several players are running the numbers on the UK medical device maker for a possible buyout after the stock's recent slump.
Airbus rose 2.4 percent, providing the biggest boost to the main European index, after the planemaker signed a deal worth tens of billions of dollars to sell 300 aircraft to China.
Meanwhile, Ferguson Plc was among the biggest weights, falling 9.5 percent after the world's largest heating and plumbing equipment supplier said trading profit will likely be at the lower end of analyst expectations this year.
European stock got a push from the healthcare and personal and household goods sectors, while banks and auto stocks fell.
Ocado rose 4.4 percent as the British online supermarket partnered with Australia's Coles Group, its fifth major overseas deal in less than 18 months.
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