Stockholm Stock Exchange recovers as OMXS closes up 1.5 percent

Among the heavyweights, engineering company Atlas Copco rose 5.3 percent.

Semiconductor company Sivers Semiconductors surged by over 60 percent on the news of a strategic collaboration with GlobalFoundries.

The market is otherwise characterized by the shaky geopolitical situation in the Middle East after Monday's announcement from Iran that peace talks with the US have been suspended, citing Israel's attacks on Lebanon. However, the price of North Sea oil (Brent) has turned down slightly and is just over $94 per barrel at 5:30 p.m.

As in Stockholm, markets in Europe were also cheerful, with London, Paris and Frankfurt all ending the trading day higher.

Since the turn of the year, the OMXS index has been up 4.7 percent.