Investing.com - European stocks closed mostly higher Tuesday, as speculative optimism regarding plans to manage Spain and Greece's debt woes continued to support investor confidence.
At the close of European trade, the EURO STOXX 50 rose climbed 0.33%, France’s CAC 40 advanced 0.39%, while Germany’s DAX 30 was even on the session..
Sentiment remained supported after Greece on Monday launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
In addition, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
Meanwhile, investors continued to watch negotiations between Democrats and Republicans to avoid the U.S. fiscal cliff, a set of spending cuts and tax increases due to come into effect on January 1 if lawmakers cannot reach an agreement on reducing the budget deficit.
The White House dismissed a proposal from congressional Republicans on Monday that included tax reforms and spending cuts, saying it did not meet President Barack Obama's pledge to raise taxes on the wealthiest Americans.
Financial stocks extended earlier gains, as shares in French lenders BNP Paribas and Societe Generale rallied 2.16% and 2.18%, while Germany's Deutsche Bank and Commerzbank jumped 1.65% and 1.68% respectively.
Peripheral lenders also trended sharply higher, as Italian banks Unicredit and Intesa Sanpaolo surged 1.84% and 2.46%, while Spain's BBVA and Banco Santander advanced 0.92% and 1.22%.
On the downside, France-based Renault tumbled 1.23%, extending earlier losses, following reports it is losing sales faster than any other European carmaker.
In London, FTSE 100 closed lower by 0.04%, as data indicated that construction sector activity in the U.K. unexpectedly declined to a three month low in November.
Financial stocks remained mostly higher, as Barclays added 0.14%, the Royal Bank of Scotland advanced 0.72% and Lloyds Banking climbed 0.74%. HSBC Holdings was still on the downside, however, with shares slipping 0.12%.
Mining stocks were mixed, as Rio Tinto rose 0.37% and BHP Billiton dropped 0.51%, while copper producer Xstrata retreated 0.44%.
Elsewhere, Wolseley was down 0.03%, trimming earlier losses, after the trade distributor of plumbing and heating products reported an increase in first quarter revenue and said further restructuring charges are expected.
In the U.S., equity markets traded down on fiscal cliff fears with the Dow Jones Average off 0.15%, the broad based S&P 500 down 0.28%, and the tech heavy Nasdaq lower by 0.62%.
In other news Tuesday, Spain's Employment Ministry said that the number of unemployed people rose less-than-expected in November, rising by 74,300 after an increase of 128,200 the previous month.
Analysts had expected the number of unemployed people to rise by 90,500 in November.
Investors are awaiting the ADP employment numbers from the U.S. and the New Zealand interest rate decision on Wednesday.
At the close of European trade, the EURO STOXX 50 rose climbed 0.33%, France’s CAC 40 advanced 0.39%, while Germany’s DAX 30 was even on the session..
Sentiment remained supported after Greece on Monday launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
In addition, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
Meanwhile, investors continued to watch negotiations between Democrats and Republicans to avoid the U.S. fiscal cliff, a set of spending cuts and tax increases due to come into effect on January 1 if lawmakers cannot reach an agreement on reducing the budget deficit.
The White House dismissed a proposal from congressional Republicans on Monday that included tax reforms and spending cuts, saying it did not meet President Barack Obama's pledge to raise taxes on the wealthiest Americans.
Financial stocks extended earlier gains, as shares in French lenders BNP Paribas and Societe Generale rallied 2.16% and 2.18%, while Germany's Deutsche Bank and Commerzbank jumped 1.65% and 1.68% respectively.
Peripheral lenders also trended sharply higher, as Italian banks Unicredit and Intesa Sanpaolo surged 1.84% and 2.46%, while Spain's BBVA and Banco Santander advanced 0.92% and 1.22%.
On the downside, France-based Renault tumbled 1.23%, extending earlier losses, following reports it is losing sales faster than any other European carmaker.
In London, FTSE 100 closed lower by 0.04%, as data indicated that construction sector activity in the U.K. unexpectedly declined to a three month low in November.
Financial stocks remained mostly higher, as Barclays added 0.14%, the Royal Bank of Scotland advanced 0.72% and Lloyds Banking climbed 0.74%. HSBC Holdings was still on the downside, however, with shares slipping 0.12%.
Mining stocks were mixed, as Rio Tinto rose 0.37% and BHP Billiton dropped 0.51%, while copper producer Xstrata retreated 0.44%.
Elsewhere, Wolseley was down 0.03%, trimming earlier losses, after the trade distributor of plumbing and heating products reported an increase in first quarter revenue and said further restructuring charges are expected.
In the U.S., equity markets traded down on fiscal cliff fears with the Dow Jones Average off 0.15%, the broad based S&P 500 down 0.28%, and the tech heavy Nasdaq lower by 0.62%.
In other news Tuesday, Spain's Employment Ministry said that the number of unemployed people rose less-than-expected in November, rising by 74,300 after an increase of 128,200 the previous month.
Analysts had expected the number of unemployed people to rise by 90,500 in November.
Investors are awaiting the ADP employment numbers from the U.S. and the New Zealand interest rate decision on Wednesday.