* Hard-hit stocks attempt recovery
* UBS shines after Q2 report
* Volvo, Electrolux warn of chip shortage
(Updates to close)
By Sruthi Shankar and Susan Mathew
July 20 (Reuters) - European stocks stabilised on Tuesday
after their worst sell-off this year in the previous session,
helped by a handful of positive corporate earnings and
production updates from miners.
The pan-European STOXX 600 index rose 0.5%, after
worries about the fast-spreading Delta coronavirus variant and
slowing economic growth had knocked 2.3% off the index on
Monday.
Miners, among sectors that bore the brunt of
Monday's bruising selloff, rose 1.5% after BHP Group
and Anglo American provided upbeat production numbers.
Swiss bank UBS climbed 5.3% on posting a 63% jump
in second-quarter net profit, helped by a booming wealth
management business. Peers Credit Suisse and Julius
Baer also rose.
"We expect European (economic) growth to peak this summer
(but) continue to favour risk assets over a 12-month horizon,"
analysts at BCA Research wrote in a note.
"The UK is a case in point — broad-based vaccinations are
keeping hospitalisation rates there low despite the sharp jump
in COVID-19 infections. Thus, the market impact of the Delta
variant may ultimately prove fleeting in developed economies."
British airline easyJet gained 0.9% after saying it
plans to fly 60% of its pre-pandemic capacity in the
July-September period, while Carnival rose 3.3% as it
expects to have resumed cruises with 65% of its total fleet
capacity by the end of 2021.
Europe's travel & leisure index has fallen sharply
from its April record highs, with travel-related stocks getting
hit by soaring infections across the continent and last-minute
changes to travel rules.
After hitting an all-time high just a week ago, fears that
surging coronavirus cases will topple a nascent economic
recovery has seen the STOXX 600 slide more than 3% from that
level. A continued decline in bond yields showed worries
remained.
Home appliances maker Electrolux tumbled 6.4%
after it reported a lower-than-expected second-quarter operating
profit and warned global supply chain woes would worsen in
coming months.
But "healthy incomes growth and elevated household saving
rates in developed markets should mean that goods spending slows
rather than slumps," said Jennifer McKeown, head of global
economics service at Capital Economics.
Norwegian telecoms operator Telenor rose 3.8% after
it raised its full-year revenue outlook.
Analysts expect profit at STOXX 600 companies to jump 115.2%
in the second quarter versus a year ago, according to Refinitiv
IBES estimates, as COVID-19 restrictions eased across Europe.
Sweden's AB Volvo fell 2.5% as it warned of
further production disruptions and stoppages this year due to
chip shortages.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Alex
Richardson and Bernadette Baum)