Investing.com - European stock markets edged higher on Tuesday, as market sentiment improved after upbeat U.S. manufacturing data on Monday confirmed hopes of further economic recovery although debt concerns in the euro zone continued to weigh.
During European morning trade, the EURO STOXX 50 edged up 0.05%, France’s CAC 40 added 0.05%, while Germany’s DAX 30 advanced 0.11%.
Stocks rallied on Monday after data showed that manufacturing activity in the U.S. rose at a faster rate than expected in March, expanding for the 32nd consecutive month.
But concerns over a potential recession in the euro zone persisted after revised data showed that manufacturing in the region remained at a three-month low in March, while the unemployment rate ticked up to a record high of 10.8% in February.
Financial stocks led gains as shares in French lenders Societe Generale and BNP Paribas climbed 1.87% and 0.95%, while Germany’s Deutsche Bank jumped 1.30%.
BNP Paribas said earlier that it increased its forecast for global economic expansion to 3.5% from 3.1%, while Deutsche Bank AG lifted its growth target to 3.5% from 3.2%, citing the restructuring of Greece’s debt and the increased European Central Bank lending.
Bollore also gained 2.39% after Groupama said it sold its 3.1% stake in the French holding company controlled by billionaire Vincent Bollore, and no longer directly holds any shares in it.
Car makers, however, were on the downside. German companies BMW and Volkswagen retreated 0.59% and 0.20%, while France’s Peugeot lost 0.64%.
French car maker association CCFA said over the weekend that the country’s auto market, Europe's biggest after Germany, shrank 24% to 197,033 vehicles in March compared with a 20% drop in February.
In London, commodity-heavy FTSE 100 rose 0.10%, supported by strong gains in the energy sector.
Cairn Energy was one of the session’s top gainers, with shares surging 5.32%, while Essar Energy jumped 1.30% and BP added 0.37%.
Cairn Energy announced earlier the acquisition of Agora Oil & Gas, a private Norwegian company with non-operated, exploration, appraisal and development assets in the U.K. and Norwegian North Sea, in a cash and stock deal.
Meanwhile, mining companies Rio Tinto and Bhp Billiton turned lower, with shares slipping 0.14% and 0.55%, while copper producers Xstrata and Kazakhmys advanced 0.55% and 0.54%.
Elsewhere, financial stocks were mixed. The Royal Bank of Scotland saw shares decline 0.54%, while Barclays jumped 1.01%, Lloyds Banking climbed 0.83% and HSBC Holdings added 0.21%.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a fall of 0.05%, S&P 500 futures signaled a 0.06% loss, while the Nasdaq 100 futures indicated a 0.01% gain.
Later in the day, the U.S. was to produce official data on factory orders, while the Federal Reserve was to release the minutes of its most recent policy meeting.
During European morning trade, the EURO STOXX 50 edged up 0.05%, France’s CAC 40 added 0.05%, while Germany’s DAX 30 advanced 0.11%.
Stocks rallied on Monday after data showed that manufacturing activity in the U.S. rose at a faster rate than expected in March, expanding for the 32nd consecutive month.
But concerns over a potential recession in the euro zone persisted after revised data showed that manufacturing in the region remained at a three-month low in March, while the unemployment rate ticked up to a record high of 10.8% in February.
Financial stocks led gains as shares in French lenders Societe Generale and BNP Paribas climbed 1.87% and 0.95%, while Germany’s Deutsche Bank jumped 1.30%.
BNP Paribas said earlier that it increased its forecast for global economic expansion to 3.5% from 3.1%, while Deutsche Bank AG lifted its growth target to 3.5% from 3.2%, citing the restructuring of Greece’s debt and the increased European Central Bank lending.
Bollore also gained 2.39% after Groupama said it sold its 3.1% stake in the French holding company controlled by billionaire Vincent Bollore, and no longer directly holds any shares in it.
Car makers, however, were on the downside. German companies BMW and Volkswagen retreated 0.59% and 0.20%, while France’s Peugeot lost 0.64%.
French car maker association CCFA said over the weekend that the country’s auto market, Europe's biggest after Germany, shrank 24% to 197,033 vehicles in March compared with a 20% drop in February.
In London, commodity-heavy FTSE 100 rose 0.10%, supported by strong gains in the energy sector.
Cairn Energy was one of the session’s top gainers, with shares surging 5.32%, while Essar Energy jumped 1.30% and BP added 0.37%.
Cairn Energy announced earlier the acquisition of Agora Oil & Gas, a private Norwegian company with non-operated, exploration, appraisal and development assets in the U.K. and Norwegian North Sea, in a cash and stock deal.
Meanwhile, mining companies Rio Tinto and Bhp Billiton turned lower, with shares slipping 0.14% and 0.55%, while copper producers Xstrata and Kazakhmys advanced 0.55% and 0.54%.
Elsewhere, financial stocks were mixed. The Royal Bank of Scotland saw shares decline 0.54%, while Barclays jumped 1.01%, Lloyds Banking climbed 0.83% and HSBC Holdings added 0.21%.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a fall of 0.05%, S&P 500 futures signaled a 0.06% loss, while the Nasdaq 100 futures indicated a 0.01% gain.
Later in the day, the U.S. was to produce official data on factory orders, while the Federal Reserve was to release the minutes of its most recent policy meeting.