(Reuters) – European stocks rose on Tuesday from their two-month lows. This was because bargain-hunters returned to purchase beaten down shares after a selloff that precipitated by worries over a slowdown in global economic growth.

With most sectors, except for defensive healthcare stocks, seeing a 1.2% increase in the pan-European index.

Global stock markets have suffered in May. High-growth stocks are the worst affected by worries about central banks raising interest rates aggressively to reduce inflation. Wall Street saw the tech-heavy Nasdaq drop more than 4 percent on Monday.

STOXX 600 lost nearly 6% in May due to China’s COVID lockdowns and the Ukraine war. Worries about faster interest rate rises also overshadowed a positive quarterly earnings season.

Sebastien Galy (senior macro strategist, Nordea Asset Management) stated, “We are in this process when liquidity is being withheld and hope is confronted by reality, which makes it quite difficult.”

Although people may buy the dip tactically, it does not necessarily mean it is attractive.

European Central Bank policymakers are becoming louder about normalizing monetary policies more quickly, with inflation reaching an unprecedented high in the Euro zone.

Investors are waiting for data at 0900 GMT on German investor sentiment, which is expected to fall further in May.

Swedish Match AB climbed 23.7% among individual stocks after Philip Morris International Inc (NYSE 🙂 announced that it was in discussions to purchase the smaller competitor.

French automaker Renault (EPA:: Group rose 1.1% after China’s Geely Automobile Holdings(OTC:), agreed to buy around 34% Renault Korea Motors at 264 billion won ($206.79m).

Bayer, an agricultural and pharmaceuticals company (OTC-:), gained 0.1% following better-than-expected quarter-end adjusted earnings and strong gains in its seed and pesticides businesses.

Kongsberg Gruppen, Norwegian defense and aerospace company, fell 12% following a report that reported earnings before interest and tax having fallen due to logistics problems and component shortages.

($1 = 1,276.6800 won)