European equities partially recovered from their steepest drop in more than two months in the previous session, when fears of monetary policy tightening by central banks delivered the worst day on Wall Street since May.
The Stoxx Europe 600 index opened 0.7 per cent higher after losing 2.2 per cent on Tuesday. Global government bond yields, which track interest rate expectations, were mostly flat in early European trading after climbing rapidly on Tuesday.
Tuesday’s market downturn came after policymakers at the US Federal Reserve and Bank of England indicated last week that interest rate rises could come sooner than markets had expected due to persistently high inflation.
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