Investing.com - European stocks pushed higher on Tuesday, as disappointing economic reports from the euro zone led to fresh speculation over a potential rate cut by the European Central Bank.
During European afternoon trade, the EURO STOXX 50 rallied 1.85%, France’s CAC 40 surged 2.21%, while Germany’s DAX 30 jumped 1.03%.
Data showed that Germany’s manufacturing PMI fell to 47.9 from 49.0 in March, well below the 50 level which separates contraction from expansion.
Germany’s services PMI came in at 49.2, down from 50.9 in March, the fastest rate of contraction in six months.
The data indicated that the euro zone’s largest economy could contract in the first quarter and fuelled speculation over a rate cut by the ECB.
The euro zone’s manufacturing PMI ticked down to 46.6 from 46.8 in March, worse than expectations for an unchanged reading, but the bloc’s services PMI edged up to 46.6 from 46.4 in March, in line with expectations.
Financial stocks were broadly higher, as shares in French lenders BNP Paribas and Societe Generale surged 2.95% and 2.96%, while Germany's Deutsche Bank rallied 1.96%.
Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander jumping 1.86% and 2.84%, while Italy's Intesa Sanpaolo and Unicredit added 0.23% and 1.74% respectively.
Elsewhere, tiremaker Michelin climbed 0.52%, erasing earlier losses posted after the company said first-quarter revenue fell 8.1% as declining car sales in Europe hurt demand.
In London, FTSE 100 advanced 1.11%, as U.K. lenders tracked their European counterparts higher.
Shares in HSBC Holdings gained 0.50% and the Royal Bank of Scotland jumped 1.21%, while Lloyds Banking and Barclays rallied 1.75% and 1.81%.
Meanwhile, mining stocks remained broadly lower. Rio Tinto and BHP Billiton were down 0.10% and 0.09% respectively, while Rangold Resources and Antofagasta plummeted 1.63% and 0.95%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% dip, S&P 500 futures signaled a 0.12% loss, while the Nasdaq 100 futures indicated a 0.06% gain.
Also Tuesday, the preliminary reading of China's HSBC manufacturing purchasing managers’ index came in at 50.5 for April, down from a final reading of 51.6 in March.
The weak data appeared to point to a slower rate of growth in the manufacturing sector of the world’s second largest economy in the second quarter.
Later in the day, the U.S. was to release official data on new home sales.
During European afternoon trade, the EURO STOXX 50 rallied 1.85%, France’s CAC 40 surged 2.21%, while Germany’s DAX 30 jumped 1.03%.
Data showed that Germany’s manufacturing PMI fell to 47.9 from 49.0 in March, well below the 50 level which separates contraction from expansion.
Germany’s services PMI came in at 49.2, down from 50.9 in March, the fastest rate of contraction in six months.
The data indicated that the euro zone’s largest economy could contract in the first quarter and fuelled speculation over a rate cut by the ECB.
The euro zone’s manufacturing PMI ticked down to 46.6 from 46.8 in March, worse than expectations for an unchanged reading, but the bloc’s services PMI edged up to 46.6 from 46.4 in March, in line with expectations.
Financial stocks were broadly higher, as shares in French lenders BNP Paribas and Societe Generale surged 2.95% and 2.96%, while Germany's Deutsche Bank rallied 1.96%.
Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander jumping 1.86% and 2.84%, while Italy's Intesa Sanpaolo and Unicredit added 0.23% and 1.74% respectively.
Elsewhere, tiremaker Michelin climbed 0.52%, erasing earlier losses posted after the company said first-quarter revenue fell 8.1% as declining car sales in Europe hurt demand.
In London, FTSE 100 advanced 1.11%, as U.K. lenders tracked their European counterparts higher.
Shares in HSBC Holdings gained 0.50% and the Royal Bank of Scotland jumped 1.21%, while Lloyds Banking and Barclays rallied 1.75% and 1.81%.
Meanwhile, mining stocks remained broadly lower. Rio Tinto and BHP Billiton were down 0.10% and 0.09% respectively, while Rangold Resources and Antofagasta plummeted 1.63% and 0.95%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% dip, S&P 500 futures signaled a 0.12% loss, while the Nasdaq 100 futures indicated a 0.06% gain.
Also Tuesday, the preliminary reading of China's HSBC manufacturing purchasing managers’ index came in at 50.5 for April, down from a final reading of 51.6 in March.
The weak data appeared to point to a slower rate of growth in the manufacturing sector of the world’s second largest economy in the second quarter.
Later in the day, the U.S. was to release official data on new home sales.