Investing.com - European stocks remained higher on Tuesday, after the release of strong euro zone economic reports, although political uncertainty in Italy and Spain persisted.
During European afternoon trade, the EURO STOXX 50 jumped 1.10%, France’s CAC 40 rallied 1.17%, while Germany’s DAX 30 added 0.26%.
Sentiment strengthened after a report showed that the Markit services purchasing managers’ index for the euro zone improved to a 10-month high of 48.6 in January from a final reading of 47.2 the previous month and above the preliminary reading of 48.3.
The data offset concerns over political tensions in Spain and Italy which pushed peripheral borrowing costs higher on Monday.
A separate report earlier showed that retail sales in the bloc dropped 0.8% in December, worse than expectations for a 0.5% fall, while November’s figure was revised lower.
Financial stocks extended earlier gains, as shares in French lenders Societe Generale and BNP Paribas jumped 1.12% and 1.66%, while Germany's Deutsche Bank rallied 1.07%.
Peripheral lenders also posted sharp gains, with Italian banks Intesa Sanpaolo and Unicredit surging 2.17% and 2.52%, while Spain's BBVA and Banco Santander advanced 1.71% and 2.27% respectively.
Elsewhere, Munich Re surged 2.41% after the world’s biggest reinsurer said it will increase its dividend for 2012.
On the downside, Royal KPN NV dove 22.56% after announcing it will sell EUR4 billion of shares.
In London, FTSE 100 advanced 0.65%, after data showed that the U.K. service’s sector expanded at the fastest pace in four months in January.
U.K. lenders tracked their European counterparts higher, as shares HSBC Holdings rose 0.48% and Barclays jumped 1.40%, while Lloyds Banking and the Royal Bank of Scotland rallied 1.46% and 2.71%.
Meanwhile, oil and gas major Anglo American remained higher, with shares advancing 1.09%, while rival company BP climbed 1.52%.
Mining stocks erased earlier losses, as BHP Billiton and Rio Tinto added 0.29% and 0.56%, while copper producer Kazakhmys rose 0.27%.
Elsewhere, ARM Holdings surged 3.78% after the designer of chips for Apple's iPhone and iPad said revenue in the fourth quarter rose 19% to GBP164.2 million, beating analysts' estimates.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.51% rise, S&P 500 futures signaled a 0.50% increase, while the Nasdaq 100 futures indicated a 0.45% gain.
Also Tuesday, Markit research group said that Spain's service sector purchasing managers' index rose to 47 in January from a reading of 44.3 the previous month, compared to expectations for a fall to 44.1.
Later in the day, the U.S. Institute of Supply Management was to publish a report on service sector activity.
During European afternoon trade, the EURO STOXX 50 jumped 1.10%, France’s CAC 40 rallied 1.17%, while Germany’s DAX 30 added 0.26%.
Sentiment strengthened after a report showed that the Markit services purchasing managers’ index for the euro zone improved to a 10-month high of 48.6 in January from a final reading of 47.2 the previous month and above the preliminary reading of 48.3.
The data offset concerns over political tensions in Spain and Italy which pushed peripheral borrowing costs higher on Monday.
A separate report earlier showed that retail sales in the bloc dropped 0.8% in December, worse than expectations for a 0.5% fall, while November’s figure was revised lower.
Financial stocks extended earlier gains, as shares in French lenders Societe Generale and BNP Paribas jumped 1.12% and 1.66%, while Germany's Deutsche Bank rallied 1.07%.
Peripheral lenders also posted sharp gains, with Italian banks Intesa Sanpaolo and Unicredit surging 2.17% and 2.52%, while Spain's BBVA and Banco Santander advanced 1.71% and 2.27% respectively.
Elsewhere, Munich Re surged 2.41% after the world’s biggest reinsurer said it will increase its dividend for 2012.
On the downside, Royal KPN NV dove 22.56% after announcing it will sell EUR4 billion of shares.
In London, FTSE 100 advanced 0.65%, after data showed that the U.K. service’s sector expanded at the fastest pace in four months in January.
U.K. lenders tracked their European counterparts higher, as shares HSBC Holdings rose 0.48% and Barclays jumped 1.40%, while Lloyds Banking and the Royal Bank of Scotland rallied 1.46% and 2.71%.
Meanwhile, oil and gas major Anglo American remained higher, with shares advancing 1.09%, while rival company BP climbed 1.52%.
Mining stocks erased earlier losses, as BHP Billiton and Rio Tinto added 0.29% and 0.56%, while copper producer Kazakhmys rose 0.27%.
Elsewhere, ARM Holdings surged 3.78% after the designer of chips for Apple's iPhone and iPad said revenue in the fourth quarter rose 19% to GBP164.2 million, beating analysts' estimates.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.51% rise, S&P 500 futures signaled a 0.50% increase, while the Nasdaq 100 futures indicated a 0.45% gain.
Also Tuesday, Markit research group said that Spain's service sector purchasing managers' index rose to 47 in January from a reading of 44.3 the previous month, compared to expectations for a fall to 44.1.
Later in the day, the U.S. Institute of Supply Management was to publish a report on service sector activity.