Investing.com - European stocks remained higher on Tuesday, even as data showed that the ZEW index for German economic sentiment ticked lower this month as market sentiment was boosted after the People’s Bank of China injected liquidity into the financial system.
During European afternoon trade, the EURO STOXX 50 gained 0.44%, France’s CAC 40 added 0.26%, while Germany’s DAX 30 rose 0.32%.
The ZEW Centre for Economic Research said its index of German economic sentiment ticked down to 61.7 this month from 62.0 in December. Analysts had expected an increase to 64.0.
However, the current conditions index rose to a 20-month high of 41.2 this month from 32.4 in December, beating expectations for an increase to 34.1.
Earlier in the day, China’s central bank added CNY255 billion to the financial system and expanded a loan facility to meet Lunar New Year demand for cash, easing concerns over a credit squeeze.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale jumped 2.69% and 1.33%, while Germany's Deutsche Bank climbed 0.67%.
Among peripheral lenders, Spanish bank BBVA added 0.23%, while Italy's Intesa Sanpaolo and Unicredit gained 0.33% and 0.97% respectively.
Elsewhere, SAP plummeted 1.30% after the German maker of business-management software said it pushed back its profitability target by two years as it shifts sales efforts from traditional license business to programs delivered over the Internet.
Alstom saw shares dive 11.66% after the French transport company reduced its outlook and posted quarterly sales below expectations.
Meanwhile, French automaker Peugeot Citroen, up 1.81%, confirmed that it is pursuing negotiations with China's Dongfeng Motor about taking a stake as part of a possible capital increase of around EUR3 billion.
In London, FTSE 100 eased up 0.06%, led by a 3.63% surge in Unilever shares after the company said fourth-quarter sales rose 4.1%, beating analysts' expectations
In the financial sector, stocks turned mixed as HSBC Holdings and Barclays lost 0.05% and 0.36% respectively, while the Royal Bank of Scotland gained 0.31% and Lloyds Banking advanced 0.83%.
Mining stocks remained lower on the other hand. Glencore Xstrata saw shares drop 0.94% and BHP Billiton declined 1%, while rivals Vedanta Resources and Rio Tinto tumbled 1.60% and 1.75% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.40% increase, S&P 500 futures signaled a 0.31% rise, while the Nasdaq 100 futures indicated a 0.53% climb.