By Sruthi Shankar
(Reuters) - A jump in oil and tobacco shares helped European stocks close higher on Tuesday, with the main indexes partially recovering from a selloff triggered by fears of new lockdowns as COVID-19 cases spike across the continent.
The pan-European STOXX 600 index <.STOXX> rose 0.2% after Monday's 3.2% drop, while the German DAX <.GDAXI> was up 0.4% and Italy's FTSE MIB <.FTMIB> gained 0.5%.
Britain's exporter-heavy FTSE 100 <.FTSE> added 0.4%, benefiting from a weaker pound after Prime Minister Boris Johnson told people to work from home where possible and ordered bars and restaurants to close early to tackle a fast-spreading second wave of infections. [.L]
London-listed oil majors Royal Dutch Shell
Britain's midcap index <.FTMC>, made up of more domestically focussed companies, slipped 0.3%.
"Many such measures will hit parts of consumer spending (mostly services such as leisure, entertainment, tourism) disproportionately," Berenberg economist Holger Schmieding said in a note. "We expect these measures to temporarily dampen but not derail the overall economic rebound."
Data showed euro zone consumer confidence rose to -13.9 in September from -14.7 in August, the European Commission said, while the Ifo Institute upgraded its forecast for Germany, expecting GDP to shrink 5.2% this year, an improvement on its last projection of a 6.7% drop.
A slew of rating actions also helped, with British American Tobacco
Danish shipping firm AP Moeller Maersk
Travel & leisure stocks <.SXTP> fell 1.1%, adding to a 5.2% drop in the previous session, with surging COVID-19 cases across Europe threatening to hamper travel demand again.
Premier Inn-owner Whitbread
Britain's Beazley
Airbus SE
Deutsche Bank
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Pravin Char)