European shares steady as selling pressure eases

European shares bounced back on Tuesday after recording their worst losses since June 2016 in the previous session, with investors assessing the economic hit of a coronavirus outbreak that has spread far beyond China.

Markets across the globe attempted to stabilise, with the pan-European STOXX 600 index rising 0.6 per cent.

After a 5.4 per cent tumble on Monday, Milan-listed shares rose 0.6 per cent. Italy is struggling with the worst flare-up of coronavirus cases in Europe, with 220 cases reported and seven dead.


Airline stocks, which took the biggest hit on Monday, edged higher. Lufthansa, EasyJet and Ryanair rose between 0.6 per cent and 1.4 per cent.

Prudential Plc rose 2.9 per cent after hedge fund Third Point LLC amassed a more than $2 billion stake and called on the British insurer to split into two companies.