European shares rose on Tuesday to recover from a pullback in the previous session caused by worries over Spain, as firmer energy stocks and takeover activity lifted the region's equity markets.

The pan-European FTSEurofirst 300 index, which fell 1.2 per cent on Monday, recovered to stand 0.5 per cent higher, while the euro zone's blue-chip Euro STOXX 50 index also advanced by 0.3 per cent.

Britain's FTSE 100 climbed 0.7 per cent, while Germany's DAX progressed 0.6 per cent.

Oil stocks such as BP and Royal Dutch Shell recovered as oil prices edged away from multi-year lows on Tuesday.

"The oil price is still the big driver of market sentiment at the moment for stock markets, but I'm not sure if it will hold above those lows, given the concerns about a glut of supply," said Hantec Markets' analyst Richard Perry.

Nevertheless, there was further support for stocks in the form of takeover activity, which gave a boost to markets after the pullback on Monday that had been caused by concerns over an inconclusive election result in Madrid over the weekend.

Shares in USG People surged 28 per cent after Japanese employment agency Recruit agreed to buy the Dutch staffing company for 1.4 billion euros ($1.53 billion), a 31 per cent premium to its Monday closing price.

Finnish software company Innofactor also rose 4.1 per cent after it announced plans to merge with Swedish Cinteros AB.

The FTSEurofirst and Euro STOXX 50 are both up by around 3 per cent since the start of 2015, with economic stimulus measures from the European Central Bank having helped support markets in spite of headwinds such as a slowdown in China and political uncertainty in countries such as Spain and Greece.

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