European stocks rise as global stocks seek rebound

The Stoxx 600 index rose 0.9 percent in early trade, with construction and material companies leading the way with gains of 2.3 percent, as most sectors and major bourses turned positive. Stocks in the health-care industry fell 0.5 percent.

The uptick in European trade comes after regional markets plunged to two-month lows on Monday as global investors abandoned risk assets in droves due to inflation fears.

The sell-off was not limited to Europe; the S&P 500 index fell dramatically, breaking through the 4,000 barrier for the first time in more than a year.

Wall Street had an unstable week last week, with eye-popping day-to-day swings as investors evaluated the likelihood of higher interest rates against the possibility of weaker economic growth.