European shares steady as selling pressure eases

(Reuters) – European shares bounced back on Tuesday after recording their worst losses since June 2016 in the previous session, with investors assessing the economic hit of a coronavirus outbreak that has spread far beyond China.

Markets across the globe attempted to stabilize, with the pan-European STOXX 600 index <.STOXX> rising 0.6%.

After a 5.4% tumble on Monday, Milan-listed shares <.FTMIB> rose 0.6%. Italy is struggling with the worst flare-up of coronavirus cases in Europe, with 220 cases reported and seven dead.

Airline stocks, which took the biggest hit on Monday, edged higher. Lufthansa , EasyJet and Ryanair rose between 0.6% and 1.4%.

Prudential Plc rose 2.9% after hedge fund Third Point LLC amassed a more than $2 billion stake and called on the British insurer to split into two companies.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)