This is CNBC's live blog covering European markets.

LONDON — European stocks closed higher on Tuesday, rounding off a choppy session following Monday's global rout.

The pan-European Stoxx 600 closed up 0.2%, finding its footing after U.S. stock markets opened in the green, though paring gains shortly before the session end.

The index had fluctuated above and below the flatline through Tuesday after tumbling by more than 2% in each of the previous two sessions.

Sectors mainly finished higher, with technology stocks, among the most volatile at the start of the week, up 1.8%.

The Monday downturn in equities was largely precipitated by last Friday's disappointing July jobs report in the U.S. that fueled fears of a broader economic slowdown, along with the unwinding of the yen carry trade.

But on Tuesday, global markets staged a moderate rebound.

Asia-Pacific markets climbed as Japan stocks rebounded sharply overnight after the Nikkei 225 and the Topix dropped over 12% in the previous session.

In late morning trade on Wall Street, the S&P 500 was 1.3% higher, with the Dow Jones Industrial Average and tech-heavy Nasdaq Composite up 0.9% and 1.3%, respectively.

Ben Gutteridge, portfolio manager at Invesco, told CNBC's "Squawk Box Europe" Monday morning that there could be more volatility ahead in the coming weeks.

"Playing out from here it's very difficult to call, I think we've got this black hole in terms of data and central bank communications. We've got some earnings, but Nvidia earnings aren't coming for a few weeks yet," Gutteridge said.

"The asymmetry's not favorable at this moment over the coming weeks, there doesn't seem to be that catalyst to get markets firing again, and the worry is you get this self-feeding volatility frenzy as markets sell-off, risk positions have to be reduced, that's taking more money out of equities, bond yields fall as equities get more nervous."

Europe markets close slightly higher

Europe's Stoxx 600 index rounded off a choppy day slightly higher, gaining 0.2% to snap a run of three negative sessions.

The U.K.'s FTSE 100 was up 0.23%, though France's CAC 40 and Germany's DAX dipped 0.27% and 0.1%, respectively.

— Jenni Reid

Fed rate cuts could make carry trade unwind worse worse, economists warn

Rapid interest rate cuts from the Federal Reserve could make matters worse for the global "carry trade" unwind, according to economists at TS Lombard.

"The natural reaction from the Fed to soft labour market data and fresh recession risks would be to cut rates and to do so relatively rapidly. But this would exacerbate any carry trade unwind," economists at TS Lombard said in a research note published Monday.

"The US economy should trump all else, but it would make sense for central bankers to be cautious," they added.

Read the full story here.

— Sam Meredith

S&P 500, Nasdaq rise Tuesday

The S&P 500 and Nasdaq Composite inched up Tuesday morning.

The broad market index gained 0.4%, while the tech-heavy Nasdaq advanced 0.5%.

Meanwhile, the Dow Jones Industrial Average traded near the flatline.

— Hakyung Kim

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Karen Johnson, head of retail at Barclays, discusses the lender's latest consumer spending report and the impact of seasonal weather and events on spending patterns.

'We have to strap ourselves in for a bit of volatility,' portfolio manager says

The coming weeks are expected to remain volatile for markets, Ben Gutteridge, portfolio manager at Invesco, told CNBC's "Squawk Box Europe" on Tuesday.

"It is certainly a worrying period. I have a more positive over the medium term, but over the next sort of few weeks, three weeks you know we have to strap ourselves in for a bit of volatility," he said.

There is a "black hole" on the economic data and central bank communication front, and only a few key earnings are expected in the upcoming days and weeks, Gutteridge said.

"There just doesn't seem to be that catalyst to sort of get markets sort of firing again," he said, adding that this raised concerns about a "self feeding sort of volatility frenzy" as the market sell-off continues, risk positions are reduced and bond yields fall.

On Tuesday, Asian markets recouped some of the losses incurred in the previous session. European markets started the day higher, but had pulled back into negative territory by 10:30 a.m. London time.

— Sophie Kiderlin

Former ECB head Trichet: No case for emergency Fed cut

There is no case for the Federal Reserve to enact an emergency rate cut between its scheduled meetings, despite growing nerves about the state of the U.S. economy, the former head of the European Central Bank told CNBC on Tuesday.

"At the present moment, taking into account all that we know, I don't see that it would be thinkable that the Fed would give such an element of — I wouldn't say panic, but an element of anxiety which is not necessarily justified," Jean-Claude Trichet, also formerly the governor of the Bank of France, told "Squawk Box Europe."

The Fed is likely to cut rates at its next meeting in September and may be torn between a 25 basis point and 50 basis point reduction, Trichet added.

"I don't exclude at all that they could do 50... A lot of new information will come, many even this week, and so we will see exactly what happens," he said.

— Jenni Reid

Europe markets open higher on Tuesday

European markets opened higher on Tuesday, with regional bourses and all sectors starting the day in the green.

The pan-European Stoxx 600 was last up 0.74% at 8:11 a.m. London time. Travel and leisure stocks led gains and were last up 1.59%, while banks and tech also rose. They had been among the most affected sectors in Monday's stock market selloff.

Major regional indices were also higher, with the U.K.'s FTSE 100 adding 0.55%, France's CAC 40 gaining 0.18% and Germany's DAX rising 0.58%.

— Sophie Kiderlin

Korean and Japanese stocks rebound sharply at the open

South Korean and Japanese stocks opened sharply higher in Tuesday morning trade, rebounding from Monday's sell-off.

Japan's Nikkei 225 and Topix both spiked as much as 9%, before paring gains to trade about 7% higher. The Japanese yen weakened to about 146 against the U.S. dollar.

South Korea's Kospi jumped more than 4% while the Kosdaq was about 5% higher.

— Christine Wang

Stocks can recover as Wall Street's recession concerns are overstated, says BlackRock

Stocks will once again find their footing and recover from a global market sell-off as recession worries abates and the unwinding of the yen carry trade settles, according to BlackRock.

"We think risk assets can recover as recession fears ease and the rapid unwinding of carry trades stabilizes," the firm's Investment Institute wrote said. "We keep our overweight to U.S. equities, driven by the AI mega force, and see the selloff presenting buying opportunities.

"We think growth will be supportive of risk assets and believe markets are pricing in too many Fed rate cuts," the note added. The firm also posits that the recent weaker-than-expected jobs report that preceded the Friday market sell-off more closely resembles a slowdown in hiring as opposed to a recession.

BlackRock added that the main driving force behind the rise in the unemployment is an uptick in labor supply due to immigration as opposed to layoffs, which is a key difference compared to previous recessions.

— Brian Evans

Fed should change communication even if it doesn't cut rates this week, BlackRock's Rieder says

The Federal Reserve should come out and signal to markets that it is aware of the issues facing the economy even if it doesn't do an emergency rate cut, according to Rick Rieder, chief investment officer of global fixed income at BlackRock.

Rieder pointed out that traders are already pricing in aggressive moves from the Federal Reserve and said that the central bank should change its public communication to show that it knows the labor market has weakened and that rate cuts have become increasingly likely.

"Do they have to panic and do inter-meeting? No, but I think ... evolving that communication would be helpful," Rieder said on "Closing Bell."

— Jesse Pound

Fed's Daly sees rate cuts on the way

San Francisco Federal Reserve President Mary Daly indicated Monday that interest rate reductions are coming later this year, though she did not provide specifics.

"Policy adjustments will be necessary in the coming quarter. How much that needs to be done and when it needs to take place, I think that's going to depend a lot on the incoming information," the central bank official said during a forum in Hawaii.

Daly noted that she still thinks the economy is growing, though the labor market is weakening and less restrictive policy will be appropriate.

"I see an economy that has momentum, and we want to make sure we keep that," she said.

—Jeff Cox