(Sharecast News) - European shares put in a slight bounce following the heavy selling seen during the previous session.
Worth noting, investors were waiting on US consumer price data due out the next day that some economists hoped might show a peak in headline inflation.
But the mood in financial markets continued to be quite cautious.
The pan-European Stoxx 600 index was up 0.68% to 420.29 with all major bourses in positive territory.
Crude oil futures, the euro and Bund yields were all lower.
In a speech in Tuesday, German central bank chief, Joachim Nagel, said he would back a first interest rate hike from the European Central Bank in July if the ECB's new economic forecasts, which were due out in June , were still pointing to a strong inflation outlook.
On the war front, French president Emmanual Macron and his Chinese counterpart, Xi Jinping, both agreed during a phone call on the urgent need for a ceasefire in Ukraine.
Shares in Swedish Match soared 25%, after US tobacco company Philip Morris International said it is in talks to buy the smaller rival.
French carmaker Renault Group dipped 0.36%, as China's Geely Automobile Holdings agreed to acquire around 34% of Renault Korea Motors for 264 billion won ($206.79m).
Centrica shares rose 4% after the energy services company said it expected full-year adjusted earnings per share to be at the top end of analyst expectations after a strong performance in the first four months of 2022.