The DAX chart of the German stock price index is pictured on the stock exchange in Frankfurt, Germany, April 25, 2022. REUTERS/Staff

April 26 (Reuters) – European stocks breathed a sigh of relief on Tuesday as profits from companies such as Swiss bank UBS and shipping giant Maersk boosted sentiment, after a massive sell-off in shares during from the previous session, driven by fears for global growth.

The continent-wide STOXX 600 (.STOXX) rose 0.6% after plunging nearly 2% on Monday on fears of an economic slowdown in China and rapid interest rate hikes in United States.

Miners (.SXPP) led the gains after falling on Monday. Almost all sub-sectors and regional markets were in the black.

“Yesterday was a blow, while today is a pause,” said Danni Hewson, financial analyst at AJ Bell.

“Earnings will be mixed as they will be strained by price rises in Europe, but investors will hang on to the good news to bite their teeth as they expect the rest (earnings) either volatile or really disappointing.”

Bank stocks (.SX7P), which are down more than 7% this year, followed their best day in nearly a week after a series of results from major European banks.

UBS (UBSG.S) gained 1.8% after posting its best first-quarter net profit in 15 years, providing a stark contrast to the decline in profits recorded by its U.S. peers this month. Read more

Spain’s Santander (SAN.MC) gained 1.1% after quarterly earnings beat forecasts, the 58% rise helped boost revenue and efficiencies in Europe. Read more

HSBC (HSBA.L) fell 2.1% after Europe’s biggest bank warned that more share buybacks were unlikely this year due to rising inflation and economic weakness, even if quarterly earnings fell less than expected. Read more

Credit Suisse Group (CSGN.S), Barclays (BARC.L) and Deutsche Bank (DBKGn.DE) are among other European banks expected to report in the coming days.

Maersk (MAERSKb.CO) jumped 5.6% after raising its full-year forecast on strong containerized freight rates. Read more

Drugmaker Novartis (NOVN.S) rose 0.9% after a 3% rise in quarterly revenue, while recruiter Randstad (RAND.AS) gained 1.0% after beating expectations in profit as companies continue to scramble to recruit workers. Read more

Meanwhile, investors focused on the US Federal Reserve meeting next week and comments from European Central Bank officials. The ECB is expected to hike rates soon and has room for up to three hikes this year, ECB policy chief Martins Kazaks told Reuters. Read more

Money markets expect more than 80 basis points of interest rate hikes from the ECB by the end of the year. IRPR

Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta

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