LONDON (TheDeal) -- European stock markets rebounded on Tuesday after Monday's devastating global selloff despite another day of heavy losses for Chinese stocks.
In London, the FTSE 100 was up 2.76% at 6,063.53 by late morning after slumping 4.67% on Monday. In Frankfurt, the DAX recovered 3.35% to 9,971.87 after a decline of 4.7% on Monday, and in Paris, the CAC 40 rose 3.29% to 4,527.54. On Monday, the Paris benchmark had plunged 5.35%.
And in Istanbul at the BIST 100 and BIST 30 were both up after President Recep Tayyip Erdogan called new elections after a June vote delivered a hung parliament.
An unexpectedly strong German business confidence index, as compiled by Munich research institute Ifo, for August helped soothe nerves. Ifo's Business Climate Index rose to 108.3 points from 108.0 in the previous month, above the 107.7 predicted. The index measuring expectations declined by 10 basis points to 102.2, but was also a better reading than expected.
Fellow mining-sector stocks, which have been hit hard by the China-triggered selloff, also rose, with Glencore (GLCNF) , Rio Tinto (RIO) - Get Rio Tinto Plc Report and Anglo American (AAUKY) all up sharply.
Insurer RSA (RSAIF) rose in London after the company said its board had given its agreement in principle to an offer from Zurich Insurance (ZURVY) worth 550 pence per share, valuing the stock at £5.6 billion ($8.8 billion) in total. Zurich has another month to finalize a deal. RSA was recently up 4.6% at 517.50 pence.
U.K. discount retailer Poundland (PDLDF) was up more than 4% in London after the U.K.'s antitrust regulator provisionally cleared Poundland's purchase of smaller peer 99p Stores after an in-depth review that at one stage looked set to derail the transaction.
In Zurich, Swiss agricultural chemicals and seeds group Syngenta (SYT) was up about 9% after reports that Monsanto (MON) increased its unsolicited offer to Sfr470 from Sfr449. The new bid values Syngenta's stock at Sfr43.1 billion ($46 billion), said the Financial Times. Monsanto has yet to confirm the sweetener.
Asian indices were mixed on Tuesday.
Australia fared the best, with the S&P/ASX 200 ending the day up 2.72% at 5,137.25.
Australia's Scentre (STGPF) , which was spun out of Westfield, ended up 3.6%. It said it has sold shopping malls to buyers including Blackstone Real Estate Asia, for A$738 million ($530.5 million).
But in mainland China, indices took another tumble, with the Shanghai Composite closing down 7.63% at 2,964.97.
In Hong Kong, the Hang Seng rose 0.72% to 21,404.96.
In Tokyo, the Nikkei closed down 3.96% at 17,806.70 and the Topix closed down 3.26% at 1,432.65.