Miners, UBS help European stocks claw back some losses
* 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 .STOXX 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 .SXPP , among sectors that bore the brunt of Monday's bruising selloff, rose 1.5% after BHP Group BHPB.L and Anglo American AAL.L provided upbeat production numbers.
Swiss bank UBS UBSG.S climbed 5.3% on posting a 63% jump in second-quarter net profit, helped by a booming wealth management business. Peers Credit Suisse CSGN.S and Julius Baer BAER.S 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 EZJ.L gained 0.9% after saying it plans to fly 60% of its pre-pandemic capacity in the July-September period, while Carnival CCL.L 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 .SXTP 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 ELUXb.ST 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 TEL.OL 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 VOLVb.ST fell 2.5% as it warned of further production disruptions and stoppages this year due to chip shortages.
Europe's travel % leisure index drops 17% since April peak Link
Reporting by Sruthi Shankar in Bengaluru; Editing by Alex
Richardson and Bernadette Baum
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