Stocks rebound but Spanish yields remain elevated

Stocks rebounded on Tuesday with the S&P 500 rising 1.2 percent and the STOXX Europe 600 rising 0.6 percent.

However, government bond yields in the euro area continued to rise. Spain's 10-year yield rose another 20 basis points to 6.71 percent while Italy's 10-year yield rose 14 basis points to 6.17 percent.

Economic data on Tuesday were mixed.

In the UK, industrial production was unchanged in April but manufacturing output fell 0.7 percent.

In India, industrial production barely returned to growth in April, rising 0.1 percent from a year earlier after having fallen 3.5 percent in March.