European shares rebound after downbeat January; UBS jumps after earnings

European shares rose on Tuesday, tracking gains on Wall Street after optimistic comments from the U.S. Treasury's top economist eased some fears about the outlook for equities, while UBS jumped after posting upbeat quarterly earnings.

The pan-European STOXX 600 rose 1.2 per cent after marking its worst month since October 2020 in January. Financial stocks and miners led the gains.

Overnight, Wall Street closed higher after Assistant Secretary for Economic Policy Ben Harris said U.S. inflationary pressures should ease in 2022 due to weaker demand for goods, easing supply bottlenecks and a receding pandemic.

Swiss lender UBS climbed 7 per cent after posting its best annual profit since the global financial crisis, emboldening it to hike share buybacks and set more ambitious profit goals.

A better-than-expected rise in fourth-quarter sales and earnings prompted HeidelbergCement to release some results ahead of schedule on Monday. The German cement maker gained 3.4 per cent in early trade on Tuesday.

Automaker Stellantis advanced 2.0 per cent after three union sources said the company could cut up to 1,400 jobs in France this year as it continued to adapt to a changing industry.