Nvidia39;s strong forecast boosts chipmakers
German economy entered recession in Q1
Luxury stocks extend slide for third day

May 25 Reuters European stocks steadied on Thursday after their worst twoday selloff since March, as investors balanced concerns over the U.S. debt ceiling standoff and a global economic slowdown with optimism from upbeat corporate earnings.

The panEuropean STOXX 600 index added 0.1 after shedding about 2.5 in the past two days, triggered by a selloff in luxury stocks and lack of progress in talks to raise the U.S. debt ceiling and avert a default.

Ratings agency Fitch put the United States39; credit on watch for a possible downgrade on Wednesday.

The moves in the market in the last couple of days have been a combination of a number of things. You still have inflation stickiness in the UK, that39;s putting concerns on interest rates. You see Germany slipping into a shallow recession, said Helen Jewell, deputy chief investment officer at BlackRock Fundamental Equities for EMEA.

The US debt ceiling is headline at the moment the uncertainty that it is bringing to the markets is incredibly difficult to navigate. On the flip side, what is giving support to markets is the real resilience in earnings and consumers.

European chipmakers gained on Thursday after the world39;s most valuable chipmaker Nvidia Corp forecast quarterly revenue more than 50 above Wall Street estimates, and said it is boosting supply to meet surging demand for its…