European stocks rise

On Tuesday European stocks rose, putting a pan-European index on the verge of booking a gain for the first time in three sessions as Turkey’s currency meltdown showed signs of steadying.

The Stoxx Europe 600 rose 0.6%, after shedding 0.3% on Monday to finish at 384.91 amid escalating worries about Turkey’s plunging lira. The gauge is showing a rise of 0.3% thus far this week but a 0.6% decline so far in 2018.

Germany’s DAX traded 0.7% higher, after closing Monday’s session down 0.5%, while France’s CAC 40 rose 0.4%, following a slide of about 0.1% in the previous session. The U.K.’s FTSE 100 meanwhile, climbed 0.2% after a 0.3% fall for the index on Monday. The euro traded at $1.1417, edging slightly higher from $1.1411 late Monday in New York, but stable.

European bourses turned higher early Tuesday as investors attempted to shake off worries about the deterioration of Turkey’s currency, and a possible spillover effect from that decline. Traders resumed tentatively buying stocks on the back of healthy economic reports.

Meanwhile, the Turkish lira rose nearly 5% against the dollar on Tuesday after a withering series of drops to historic lows against the U.S. dollar. The slide has roiled global markets. The lira crisis, kicked off partly by reports by the Financial Times that the European Central Bank was concerned about contagion from Turkey’s currency slide to eurozone financial firms, took a turn for the worst after U.S. President Donald Trump on Friday said he authorized the doubling of steel and aluminum tariffs on Ankara.

Trump’s representatives on Monday told Turkey’s ambassador that negotiations between the nations cannot move forward to remove sanctions against Ankara until detained evangelical pastor Andrew Brunson is released from the country.

A report on expansion in Germany showed that Europe’s second-largest economy saw growth of 0.5% in the second quarter, with an annualized rate of 1.8%. However, the report indicated that global trade tensions and Turkey’s currency crisis are clouding the business outlook.