Investing.com - European stocks opened higher on Tuesday, recovering from the previous session’s rout as investors eyed the release of upcoming data on the number of unemployed people in Germany.
During European morning trade, the EURO STOXX 50 gained 0.37%, France’s CAC 40 added 0.21%, while Germany’s DAX 30 rose 0.29%.
Equity markets had weakened broadly after data on Monday showed that China’s Caixin manufacturing purchasing managers’ index fell to 48.2 this month from 48.6 in December, confounding expectations for a rise to 48.9.
It was the lowest reading since September and was well below the 50-point level which separates expansion from contraction.
Markets were also jittery amid concerns over growing tensions in the Middle East after Saudi Arabia executed a prominent Shi'ite cleric, prompting a retaliatory attack on the Saudi embassy in Iran.
Earlier Tuesday, data showed that the number of unemployed people in Spain declined by 55,800 in December, compared to expectations for a 52,600 drop and after a 27,100 decline the previous month.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) advanced 0.72% and 0.66%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) climbed 0.50% and 1.79%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 0.74% and 0.62% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) were up 0.63% and 2.64%.
Elsewhere, Orange SA (PA:ORAN) rallied 1.71% after confirming it was in talks with Bouygues (PA:BOUY) to buy its telecoms unit. Shares in Bouygues were up 2.38%.
In London, commodity-heavy FTSE 100 advanced 0.87%, boosted by sharp gains in the mining sector.
Shares in Bhp Billiton (L:BLT) jumped 2.73% and Glencore (L:GLEN) rallied 3.03%, while rival company Anglo American (L:AAL) surged 3.13%.
Financial stocks added to gains, as HSBC Holdings (L:HSBA) inched up 0.01% and Barclays (L:BARC) rose 0.35%, while Lloyds Banking (L:LLOY) climbed 0.76% and the Royal Bank of Scotland (L:RBS) jumped 1.48%.
On the downside, Next PLC (L:NXT) plunged 4.03% after the clothing retailer reported lower-than-expected fourth quarter sales due to unusually warm weather in November and December.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.13% slip, S&P 500 futures signaled a 0.12% loss, while the Nasdaq 100 futures indicated a 0.15% fall.