European stocks rallied Tuesday, bouncing back somewhat from the prior day’s China-led global selloff, though traders remained unsettled. The Stoxx Europe 600 SXXP, +1.07% gained 0.8% to 389.12, recovering partly from Monday’s 2.2% drop. Germany’s DAX 30 DAX, +1.06% rose 1% to 11,163.46, while France’s CAC 40 PX1, +1.01% tacked on 0.8% to 4,968.92, still trading below the 5,000 level. The U.K.’s FTSE 100 UKX, +0.87% advanced by 0.8% to 6,556.53. “Although we’ve seen an end to the bloodletting overnight, sentiment still remains nervous, as no one believes we’ve hit a genuine bottom,� said Jonathan Sudaria, night dealer at London Capital Group, in a note Tuesday. “More likely, China’s Politburo has gone into overdrive with their already extreme measures to prop up the markets, such as forcing brokerages and listed companies to buy stocks.� European traders continued to watch action in China, a day after the Shanghai Composite Index SHCOMP, -1.68% dropped 8.5%, for its biggest decline in more than eight years. Chinese stocks closed down Tuesday, but well off their session lows. Michelin ML, -6.21% was the biggest decliner among Stoxx Europe 600 components, falling nearly 7% after reporting that net profit rose 13% in the first half of 2015. The tire maker also said second-half profit gains will be hurt by deals that curtail its ability to pass on raw-material price hikes to customers, a Bloomberg story said. German drugs-packaging firm Gerresheimer AG GXI, +14.04% jumped 14% for the pan-European index’s largest gain following news it plans to buy packaging firm Centor U.S. Holding Inc. for $725 million. Gerresheimer expects the deal will boost adjusted 2016 earnings per share by a low double-digit percentage. RSA Insurance Group PLC RSA, +14.89% was another big winner, rising 13% as Zurich Insurance Group AG ZURN, -0.91% is mulling a potential offer for the U.K. firm. The euro EURUSD, +0.0090% lost 0.2% to $1.1067, dipping back under the $1.11 level.

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