European stocks recoup some of their losses after heavy selling

LONDON (Reuters) – European shares rebounded from two-month lows on Tuesday with broad-based gains, buoyed by bargain-hunting after heavy selling on fears of slowing economic growth. By 07:17 GMT, the European Stoxx 600 index rose 0.9 percent, after closing on Monday at its lowest level since early March. Stock prices were hit globally in May, as shares of growth-related companies sold off heavily on fears that major central banks will raise interest rates sharply to contain high inflation. On Wall Street, the Nasdaq index of technology shares fell more than 4 percent on Monday. Shares rose in most sectors in Europe, with the exception of telecom and healthcare. Shares of Swedish tobacco company Match AB rose 25 percent, after American tobacco company Philip Morris said it was in talks to buy it. France’s Renault Motor Co. rose 1.4 percent after China’s Geely agreed to buy a 34 percent stake in the Korean Renault unit for $206.79 million.