Stocks mixed as traders balance recession risk, China reopening

Stock markets traded mixed on Tuesday as investors weighed the chances of a global recession this year.

With China's economy reopening from strict lockdowns, coupled with easing energy prices, there is hope that a severe downturn can be averted even if inflation remains stubbornly high and interest rates look set to keep on rising, albeit at a slower pace.

The eurozone economy grew in January for the first time in six months, a closely watched survey showed on Tuesday, raising hopes that Europe will avoid a recession this winter.

The S&P Global Flash Eurozone purchasing managers' index (PMI) rose to 50.2 in January from 49.3 in December. A figure above 50 indicates growth.

At the same time, heavy fallout from lingering high energy costs was further evidenced on Tuesday with data showing UK government debt ballooning further in December as it subsidises gas and electricity bills for households and businesses.

"Lower energy prices are helping consumer confidence rebound," noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. "It's another positive sign for companies fearing the effects of well-flagged interest rate rises, indicating that consumers...