LONDON, Aug 8: European stock markets rebounded on Tuesday from recent losses, with analysts increasingly certain the US Federal Reserve will stop its long run of interest rate rises.
European shares had plunged on Monday as London Brent crude oil prices spiked to a new record, and as investors fretted over the outlook for American borrowing costs after Tuesday's decision.
In early deals, London's FTSE 100 index of leading shares won 0.20 per cent to 5,840.20 points, Frankfurt's DAX 30 index added 0.67 per cent to 5,664.64 points and in Paris the CAC 40 gained 0.40 per cent to 4,976.01.
The DJ Euro Stoxx 50 index of leading eurozone shares increased 0.40 per cent to 3,672.98 points.
The euro stood at $1.2844.
US stocks had closed with falls on Monday as nervous investors braced for the US rate call.
If the betting is correct, the Fed was to pause on a campaign of hikes stretching back to June 2004 that has lifted the headline US interest rate up to the current level of 5.25 per cent through 17 consecutive increases.
Japanese share prices closed 2.05 per cent higher Tuesday on bargain-hunting, recouping most of the previous day's plunge despite jitters over the Fed decision.
In London, even though the market was up, there were a distinct lack of positive stories, dealers said.
Shares in ITV, the biggest British commercial television network, took a hit from news that its under-fire chief executive Charles Allen was quitting after two and a half years in the post.
The stock sank 1.48 per cent to 100 pence.
And Standard Chartered slid 0.23 per cent to 1,307 pence, despite the Britain-based emerging markets bank posting a solid increase in first-half net profits, helped by its 2005 acquisition of Korea First Bank.
Deutsche Boerse shares added 1.82 per cent to 111.70 euros in Frankfurt after broker WestLB lifted its price target on the stock to 130 euros from 124 previously.
In Paris, Bouygues Telecom, France's third-biggest operator, rose 0.70 per cent to 38.84 euros after France's telecom regulator Arcep unveiled mobile subscription data for the second quarter, which indicated a strong increase in new clients for Bouygues.
French electrical equipment giant Schneider Electric climbed 1.72 per cent to 82.65 euros, benefiting from a positive analyst note from CIC Securities, which estimated the stock was undervalued.
In US trading on Monday, the Dow Jones Industrial Average finished down 0.19 per cent at 11,219.38 points, while the technology-loaded Nasdaq index ended 0.60 per cent lower at 2,072.50 points.
The Standard and Poor's 500 broad-market index closed down 0.28 per cent at 1,275.77 points.
In Asia on Tuesday, Tokyo's benchmark Nikkei-225 index ended at 15,464.66 points. Hong Kong's key Hang Seng Index closed up 0.56 per cent at 17,048.20 points.—AFP