European stocks stabilise after inflation-driven rout

Wall Street's benchmark S&P 500 index had confirmed on Monday it is in a bear market

European equities inched higher on Tuesday as investors snapped up beaten-down shares following a bruising selloff in the previous session on worries over aggressive U.S. interest rate hikes and a potential recession, Qazet.az reports.

The continent-wide STOXX 600 index (.STOXX)edged up 0.1% after sliding 2.4% to over three-month lows on Monday.

Battered banks (.SX7P) and oil & gas (.SXEP)stocks led sectoral gains in Europe, while real estate (.SX86P) fell the most.

Wall Street's benchmark S&P 500 index had confirmed on Monday it is in a bear market, or a 20% drop from its record closing high, on growing fears that the expected aggressive rate hikes by the U.S. Federal Reserve would push the economy into a recession.

Focus is on the Fed's policy decision due on Wednesday, with many expecting a big three-quarter-percentage point rate hike following hot inflation print last week.