STOXX 600 up 0.4
Monte dei Paschi di Siena up after raising profit outlook
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Aug 6 Reuters European shares inched higher on Tuesday after hitting sixmonth lows in the previous session, resonating with a recovery across global markets and buoyed in part by corporate earnings updates.

The STOXX 600 was up 0.4 by 0838 GMT, after logging its steepest threeday decline since June 2022 and closing below the key 500points mark for a second day on Monday.

The fear gauge Euro STOXX volatility index cooled down to 27.8 points after hitting its highest level since March 2022 at 40.8 in the previous session.

Japan39;s Nikkei closed up 10 after its worst singleday decline since 1987 in the previous session, while most other Asian equity indexes also rose.

Wall Street also looked steadier, with SP 500 futures up 1, while Nasdaq futures rose 1.4

Investor nerves appeared to be soothed after Federal Reserve policymakers pushed back against fears of a recession. Fed San Francisco President Mary Daly said she was more confident U.S. inflation is headed toward the Fed39;s 2 goal.

However, traders were wary of making big bets as they were still reassessing the impact of the pullback and were waiting for a fresh catalyst to see the bullish appetite take hold.

There is a lack of drive and appetite in today39;s session to try and take this further and move higher even though we have seen some favourable conditions for bias to come in, said Daniela Hathorn,…