London - European shares rose on Tuesday, recovering some poise after a sharp sell-off the previous day on concerns about China's economy that saw around 450 billion euros ($520 billion) wiped off the value of leading stocks.
The pan-European FTSEurofirst 300 index, which slumped 5.4 percent on Monday, rose 1.8 percent, while the euro zone's blue-chip Euro STOXX 50 index gained 1.6 percent.
Swiss agricultural chemicals maker Syngenta was the best-performing FTSEurofirst stock, rising 7 percent after a source said Monsanto had sweetened a takeover.
The index is on course for its biggest monthly loss since 2002, having fallen more than 10 percent so far in August.
Germany's DAX rose 1.6 percent after a near 5 percent decline on Monday, leaving it some 20 percent below a record high reached in April.
World financial markets have been rattled by a sharp sell-off in the Chinese stock market that followed the devaluation of the yuan earlier this month.
Chinese shares slumped again on Tuesday, while Japan's Nikkei fell nearly 4 percent.
“European equity markets are showing hesitant signs of trying to stage an early rebound,” said Peregrine & Black senior sales trader Markus Huber.
“However, with Chinese markets getting hit once again today and overall confidence in markets being fairly low, it needs to be seen if the current bounce is only of a temporary nature or if we have indeed finally seen the lows of the current down-move.”
Goldman Sachs' strategists cut their position on equities to 'neutral' from 'overweight' due to the impact of the drop in China, though they did not expect the sell-off to cause a global recession, partly due to signs of economic growth in the United States and Europe.
“In the meantime, we recognise the shift in sentiment that is being reflected in recent price action both in equities and, via falling inflation expectations, in bonds,” they wrote in a note.
REUTERS