European markets rose cautiously on Tuesday as investors continued to assess recession risks in the region.
The pan-European Stoxx 600 added 0.5% by mid-afternoon, with retail stocks climbing 2.8% to lead gains as most sectors nudged into positive territory.
Oil and gas stocks were the outliers, slipping 2.1% as Brent crude prices retreated following a modest supply cut from OPEC+ and previously surging gas prices pulled back.
European markets closed lower on Monday as investors pondered a raft of economic challenges the region faces, with the halted gas supply from Russia dominating market sentiment Monday.
The sharp downward moves for risk assets came after Russia’s state-owned energy giant Gazprom announced that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely, citing additional repair requirements. The euro fell sharply while European gas prices soared.
Gas flows via Nord Stream 1 will not resume until Siemens Energy repairs faulty equipment, Gazprom’s deputy CEO Vitaly Markelov told Reuters on Tuesday.
Stateside, U.S. stocks opened higher following the Labor Day holiday. Meanwhile, stocks in Asia were mixed in Tuesday trade.
Read More: European markets nudge higher as investors assess economic challenges