Investing.com - European stocks were sharply higher on Tuesday, boosted by comments by European Central Bank Executive Board member Benoit Coeure and as investors eyed the release of upcoming economic sentiment data from Germany.
During European morning trade, the EURO STOXX 50 surged 1.72%, France’s CAC 40 rallied 1.75%, while Germany’s DAX 30 jumped 1.63%.
European equity markets strengthened after ECB board member Benoit Coeure said that the central bank intends to increase its purchases of euro-area assets in May and June ahead of an expected low-liquidity period in the summer.
The comments were made during a speech delivered in London on Monday.
Meanwhile, Greece labor minister said Tuesday that an agreement with its lenders would soon be reached.
Athens is scrambling to reach a cash-for-reform deal with its international lenders in time to avoid a cash crunch.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) surged 2.01% and 1.93%, while Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) rallied 1.94% and 2.94%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) jumped 1.57% and 1.82% respectively, while Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) advanced 1.29% and 1.92%.
Elsewhere, Julius Baer Gruppe AG (SIX:BAER) rallied 1.30% after saying market volatility helped increase revenue, boosting margins this year.
In London, FTSE 100 gained 0.47%, ahead of U.K. inflation data to be released later in the day.
Financial stocks were mostly higher, with Lloyds Banking (LONDON:LLOY) inching up 0.06% and the Royal Bank of Scotland (LONDON:RBS) climbed 0.74%, while Barclays (LONDON:BARC) jumped 1.21%. HSBC Holdings (LONDON:HSBA) underperformed however, slipping 0.13%.
Meanwhile, mining stocks led losses on the commodity-heavy index. Shares in Glencore Xstrata (LONDON:GLEN) dropped 0.99% and Randgold Resources (LONDON:RRS) tumbled 1.21%, while rivals Fresnillo (LONDON:FRES) and Bhp Billiton (LONDON:BLT) plummeted 1.26% and 2.26% respectively.
Meanwhile, Aveva Group (LONDON:AVV) shares lost 4.46% after its chief executive officer said his company is not in takeover talks.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.30% increase, S&P 500 futures signaled a 0.23% gain, while the Nasdaq 100 futures indicated a 0.28% rise.
Later in the day, the ZEW Institute was to report on German economic sentiment, while the U.S. was to publish data on building permits and housing starts.