Investing.com - European stocks surged higher on Tuesday on rising German confidence numbers, surprisingly positive U.S. housing data and a better than expected Spanish note auction.
After the close of European trade, the EURO STOXX 50 soared higher by 2.70%, France's CAC 40 climbed 2.73%, while Germany's DAX 30 jumped 3.11%. Meanwhile, in the U.K. the FTSE 100 gained 1.02%.
German business confidence rose in December to 107.2 from 106.6 in November triggering the biggest stock rally in a month.
Bullish data from the U.S. added to the positive sentiment with U.S. housing starts increased by 9.3%, beating the highest estimates from economists.
In addition, U.S. building permits climbed to the highest level in over a year signaling an improving economy.
A successful Spanish three and six month bill auction brought much needed optimism to the euro zone as Spain sold EUR5.64 billion of the notes, crushing the maximum target of EUR4.5 billion set by the Treasury.
Loan Smith, a director at Knight Capital Europe explained the rally to Bloomberg, "The data is incremental positive which may have given rise to short covering."
Financial companies and banks led the advance with UniCredit adding 6.3%, BNP Paribas climbing 6% and Intesa Sanpaola advancing 5.8% on the session.
Pharmaceutical company Bayer AG climbed by over 5% after announcing it believes 4 of its drugs in the pipeline may become very successful.
Although not all pharmaceuticals participated in the rally, Astra Zeneca gave back 1.5% after projecting earnings on the low end of estimates due to a research set back.
U.S. stocks surged higher across the board in midday trading with the Dow Jones Industrial Average jumping 2.29%, the S&P 500 ahead by 2.54% and the Nasdaq 100 advancing 2.65%.
Investors are awaiting U.S. existing home sales on Wednesday.
After the close of European trade, the EURO STOXX 50 soared higher by 2.70%, France's CAC 40 climbed 2.73%, while Germany's DAX 30 jumped 3.11%. Meanwhile, in the U.K. the FTSE 100 gained 1.02%.
German business confidence rose in December to 107.2 from 106.6 in November triggering the biggest stock rally in a month.
Bullish data from the U.S. added to the positive sentiment with U.S. housing starts increased by 9.3%, beating the highest estimates from economists.
In addition, U.S. building permits climbed to the highest level in over a year signaling an improving economy.
A successful Spanish three and six month bill auction brought much needed optimism to the euro zone as Spain sold EUR5.64 billion of the notes, crushing the maximum target of EUR4.5 billion set by the Treasury.
Loan Smith, a director at Knight Capital Europe explained the rally to Bloomberg, "The data is incremental positive which may have given rise to short covering."
Financial companies and banks led the advance with UniCredit adding 6.3%, BNP Paribas climbing 6% and Intesa Sanpaola advancing 5.8% on the session.
Pharmaceutical company Bayer AG climbed by over 5% after announcing it believes 4 of its drugs in the pipeline may become very successful.
Although not all pharmaceuticals participated in the rally, Astra Zeneca gave back 1.5% after projecting earnings on the low end of estimates due to a research set back.
U.S. stocks surged higher across the board in midday trading with the Dow Jones Industrial Average jumping 2.29%, the S&P 500 ahead by 2.54% and the Nasdaq 100 advancing 2.65%.
Investors are awaiting U.S. existing home sales on Wednesday.