Investing.com - European stock markets added to strong gains on Tuesday, after data showed that German economic sentiment improved to the highest level since June 2010 this month and following the release of robust U.S. retail sales data.
During European afternoon trade, the EURO STOXX 50 rallied 1.1%, France’s CAC 40 jumped 1.1%, while Germany’s DAX 30 surged 1.05%.
European equities rose to the highest level of the session after data showed that German economic sentiment improved to the highest level since June 2010 this month.
The data also showed that economic sentiment in the euro zone turned positive for the first time in ten months, rising to 11.0 from a reading of minus 8.1 in February.
Sentiment found further support after official data showed that retail sales in the U.S. 1.1% in February to the highest level in five months.
Shares in the financial sector remained higher, with Commerzbank shares rallying 4.2% and Credit Agricole up 4.1% after euro zone finance ministers said that Greece would receive formal approval for its second bailout later this week.
Spanish lenders were also broadly higher, despite concerns over Spain’s fiscal health. The country faced calls from European leaders to make deeper budget cuts, amid concerns that the region’s debt crisis could flare up after the country’s prime minister raised the deficit target earlier this month.
Banco Santander shares climbed 1.8%, while BBVA added 1.3%.
Meanwhile, shares in insrance giant Munich Re advanced 2.15% after saying it has made a strong start to 2012 and is aiming for profit around EUR2.5 billion, after posting a profit of EUR712 million in 2011.
Elsewhere, London’s commodity-heavy FTSE 100 jumped 0.9%, as financial sector stocks led gains, tracking their European counterparts higher.
Royal Bank of Scotland shares surged 2.1%, Europe’s largest bank HSBC Holdings added 2%, while Barclays gained 1.65%.
Meanwhile, raw material producers advanced, with mining giants Rio Tinto and BHP Billiton gaining 2% and 1.75% respectively, while copper producer Xstrata added 1.15%.
However, Antofagasta tumbled 3.5% after reporting lower-than-expected 2011 net profit and warned that economic uncertainty would lead to short-term price volatility.
Meanwhile, in the U.S., equity markets pointed to an upbeat open as traders were awaiting the outcome of a Federal Reserve policy meeting later in the day.
The meeting comes after Friday’s robust U.S. employment data, which showed that the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain.
The upbeat data diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.
However, the Wall Street Journal reported last week that the Fed is considering a strategy that would allow it to undertake another round of bond buying, while lowering the risk of inflation.
The Dow Jones Industrial Average futures pointed to a gain of 0.45%, S&P 500 futures signaled a 0.6% increase, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was also to release government data on business inventories.
During European afternoon trade, the EURO STOXX 50 rallied 1.1%, France’s CAC 40 jumped 1.1%, while Germany’s DAX 30 surged 1.05%.
European equities rose to the highest level of the session after data showed that German economic sentiment improved to the highest level since June 2010 this month.
The data also showed that economic sentiment in the euro zone turned positive for the first time in ten months, rising to 11.0 from a reading of minus 8.1 in February.
Sentiment found further support after official data showed that retail sales in the U.S. 1.1% in February to the highest level in five months.
Shares in the financial sector remained higher, with Commerzbank shares rallying 4.2% and Credit Agricole up 4.1% after euro zone finance ministers said that Greece would receive formal approval for its second bailout later this week.
Spanish lenders were also broadly higher, despite concerns over Spain’s fiscal health. The country faced calls from European leaders to make deeper budget cuts, amid concerns that the region’s debt crisis could flare up after the country’s prime minister raised the deficit target earlier this month.
Banco Santander shares climbed 1.8%, while BBVA added 1.3%.
Meanwhile, shares in insrance giant Munich Re advanced 2.15% after saying it has made a strong start to 2012 and is aiming for profit around EUR2.5 billion, after posting a profit of EUR712 million in 2011.
Elsewhere, London’s commodity-heavy FTSE 100 jumped 0.9%, as financial sector stocks led gains, tracking their European counterparts higher.
Royal Bank of Scotland shares surged 2.1%, Europe’s largest bank HSBC Holdings added 2%, while Barclays gained 1.65%.
Meanwhile, raw material producers advanced, with mining giants Rio Tinto and BHP Billiton gaining 2% and 1.75% respectively, while copper producer Xstrata added 1.15%.
However, Antofagasta tumbled 3.5% after reporting lower-than-expected 2011 net profit and warned that economic uncertainty would lead to short-term price volatility.
Meanwhile, in the U.S., equity markets pointed to an upbeat open as traders were awaiting the outcome of a Federal Reserve policy meeting later in the day.
The meeting comes after Friday’s robust U.S. employment data, which showed that the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain.
The upbeat data diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.
However, the Wall Street Journal reported last week that the Fed is considering a strategy that would allow it to undertake another round of bond buying, while lowering the risk of inflation.
The Dow Jones Industrial Average futures pointed to a gain of 0.45%, S&P 500 futures signaled a 0.6% increase, while the Nasdaq 100 futures indicated a 0.65% gain.
Later in the day, the U.S. was also to release government data on business inventories.