Europe close: Stocks bounce back, lenders still in focus

European shares bounced back partially on Tuesday with lenders catching a bid, mirroring gains in the States.

"Market sentiment appears to have a turn for the better today, with equities throughout Europe and the US moving higher despite ongoing concerns over the health of the banking sector," said Josh Mahony, senior market analyst at IG.

The pan-European Stoxx 600 was up 1.53% at 449.56 with all major bourses in the green.

The Stoxx 600 sector gauge for Banks added 2.49% to 153.83.

Euro/dollar was little changed at 1.0732 but front-dated Brent crude oil futures was down by 3.2% to $77.61 a barrel on the ICE.

Gold prices on the other hand held above $1900 an ounce, after jumping 2% on Monday as investors turned to the precious metal, which is a traditional safe haven in times of volatility.

In equity news, shares in merchant bank Close Brothers fell after a "challenging" first half, posting a drop in profits as it was hit by provisions related to the Novitas loan book.

In the six months to the end of January 2023, operating profit before tax slumped 91% to £11.7m, coming in well below consensus expectations of £33.3m. Adjusted operating profit slid 90% to £12.6m.

Swiss lab instrument maker Tecan jumped as it posted double-digit sales growth in 2022.