Investing.com - European stocks remained higher on Tuesday, after data showed that German economic sentiment improved to a five-month high in August.
Gains were limited as investors’ awaited a report on U.S. retail sales later in the session, a data point that will be scrutinized for its potential impact on the Federal Reserve's monetary policy stance.
During European afternoon trade, the EURO STOXX 50 inched up 0.3%, France’s CAC 40 added 0.2%, while Germany’s DAX 30 advanced 0.6%.
The ZEW Centre for Economic Research said earlier that its index of German economic sentiment rose by 5.7 points to a five-month high of 42.0 in August from July’s reading of 36.3.
Meanwhile, the index of euro zone economic sentiment improved to 44.0 in August, the highest reading since April 2010 and up from 32.8 in July.
A separate report showed that industrial production in the euro zone rose by a seasonally adjusted 0.7% in June, broadly in line with expectations for a 0.8% gain, after falling by 0.2% in May.
But gains were limited as investors turned cautious ahead of the release of U.S. data on retail sales later in the day, amid ongoing uncertainty over when the Fed plans to taper its USD85-billion-a-month bond buying program.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
German utility provider E.ON saw shares rally 3% after the company reported first-half underlying net income of EUR1.91 billion, exceeding the average analyst estimate of EUR1.79 billion.
Also in earnings news, German potash maker K+S AG slumped 3% after reporting lower-than-expected second-quarter revenue.
Elsewhere, in London, the commodity-heavy FTSE 100 eased up 0.4%, supported by gains in mining stocks.
Silver producer Fresnillo saw shares jump 4.6% after UBS recommended buying the stock, saying it is “well positioned to outperform in an uncertain price environment.”
In earnings news, shares of insurance firm Resolution advanced 2.9% after reporting a 17% rise in operating earnings per share in the first half.
Official data released earlier in the day showed that the rate of consumer inflation in the U.K. eased in line with forecasts in July.
The Office for National Statistics said consumer price inflation in the U.K. ticked down to 2.8% on a year-over-year basis in July, in line with economists’ expectations, from 2.9% in June.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 2% in July, below expectations for a 2.3% increase.
Earlier Tuesday, a report by the Royal Institution of Chartered Surveyors said that U.K. house prices rose at the fastest pace in seven years in July, fuelling fears over a housing bubble.
The RICS seasonally adjusted house price balance jumped to 36 in July from a reading of 21 in June.
Across the Atlantic, U.S. equity market futures pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.3% rise, S&P 500 futures signaled a 0.2% gain, while the Nasdaq 100 futures indicated a 0.2% increase.
Gains were limited as investors’ awaited a report on U.S. retail sales later in the session, a data point that will be scrutinized for its potential impact on the Federal Reserve's monetary policy stance.
During European afternoon trade, the EURO STOXX 50 inched up 0.3%, France’s CAC 40 added 0.2%, while Germany’s DAX 30 advanced 0.6%.
The ZEW Centre for Economic Research said earlier that its index of German economic sentiment rose by 5.7 points to a five-month high of 42.0 in August from July’s reading of 36.3.
Meanwhile, the index of euro zone economic sentiment improved to 44.0 in August, the highest reading since April 2010 and up from 32.8 in July.
A separate report showed that industrial production in the euro zone rose by a seasonally adjusted 0.7% in June, broadly in line with expectations for a 0.8% gain, after falling by 0.2% in May.
But gains were limited as investors turned cautious ahead of the release of U.S. data on retail sales later in the day, amid ongoing uncertainty over when the Fed plans to taper its USD85-billion-a-month bond buying program.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
German utility provider E.ON saw shares rally 3% after the company reported first-half underlying net income of EUR1.91 billion, exceeding the average analyst estimate of EUR1.79 billion.
Also in earnings news, German potash maker K+S AG slumped 3% after reporting lower-than-expected second-quarter revenue.
Elsewhere, in London, the commodity-heavy FTSE 100 eased up 0.4%, supported by gains in mining stocks.
Silver producer Fresnillo saw shares jump 4.6% after UBS recommended buying the stock, saying it is “well positioned to outperform in an uncertain price environment.”
In earnings news, shares of insurance firm Resolution advanced 2.9% after reporting a 17% rise in operating earnings per share in the first half.
Official data released earlier in the day showed that the rate of consumer inflation in the U.K. eased in line with forecasts in July.
The Office for National Statistics said consumer price inflation in the U.K. ticked down to 2.8% on a year-over-year basis in July, in line with economists’ expectations, from 2.9% in June.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 2% in July, below expectations for a 2.3% increase.
Earlier Tuesday, a report by the Royal Institution of Chartered Surveyors said that U.K. house prices rose at the fastest pace in seven years in July, fuelling fears over a housing bubble.
The RICS seasonally adjusted house price balance jumped to 36 in July from a reading of 21 in June.
Across the Atlantic, U.S. equity market futures pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.3% rise, S&P 500 futures signaled a 0.2% gain, while the Nasdaq 100 futures indicated a 0.2% increase.