Investing.com - European stocks traded higher on Tuesday as market participants digested a deluge of earnings and celebrated positive news from Greece and the German economy.
During European morning trade, the Euro Stoxx 50 rose 0.25%, France’s CAC 40 traded up 0.28%, while Germany’s DAX 30 gained 0.50%.
Euro zone officials announced on Tuesday that they had given the green light to release €2.8 billion ($3 billion) in funds to Greece as part of the country’s third bailout after Athens completed the required reforms.
Also underpinning sentiment, German business confidence in October improved to the highest level since April 2014, as uncertainty over Britain's vote to exit the European Union continued to abate, industry data showed on Tuesday.
In a report, the German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 110.5 this month from a reading of 109.5 in September, above forecasts for 109.5.
On the company front, Europe was awash with earnings. French telecom company Orange SA (PA:ORAN) reported a 1.6% increase in earnings before interest, taxes, depreciation and amortization. Shares led the CAC 40 higher with gains of more than 4%.
Though Banca Monte dei Paschi di Siena SpA (MI:BMPS) reported a €1.15 billion loss for the most recent quarter as non-performing loans continued to weigh on its balance sheet, shares in the Italian lender skyrocketed more than 20% as it announced a turnaround plan including the sale of €28 billion in bad debts, €5 billion in new capital, axing about 10% of its workforce and closing 500 branches.
On the downside, Novartis AG (SIX:NOVN) traded down around 1.5% after Europe’s second-largest drugmaker reported a decrease in profit for the seventh straight quarter.
Meanwhile, oil prices remained higher in choppy trade on Tuesday, as investors continued to watch developments in OPEC’s dealings to reach an agreement on curbing output. A committee including non-OPEC member Russia was scheduled to meet in Vienna on Friday and Saturday in order to hammer out the details of the proposal to be discussed at OPEC’s official meeting on November 30.
The private American Petroleum Institute (API) is due to publish its weekly crude stocks estimates later on Tuesday, followed by the official Energy Information Administration (EIA) data due on Wednesday.
Energy stocks were broadly higher, as French oil and gas major Total SA (PA:TOTF) gained 0.63% and Italy’s ENI (MI:ENI) advanced 0.51%, while Norwegian rival Statoil (OL:STL) climbed 0.22%.
Financial stocks were mostly lower, as French lenders BNP Paribas (PA:BNPP) fell 0.47% and Societe Generale (PA:SOGN) edged forward 0.11%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) traded down 0.78% and 1.42%, respectively.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) fell 0.19% and 0.76% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) shed 0.40% and 0.93%.
In London, the commodity-heavy FTSE 100 gained 0.51%, boosted by gains in the mining sector after Chinese iron ore futures prices hit a six-year high overnight.
Shares in Glencore (LON:GLEN) rallied 2.82% and Anglo American (LON:AAL) soared 4.36%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) gained 1.47% and 2.83%, respectively.
Energy stocks added to gains, as BP (LON:BP) advanced 1.04% and rival Royal Dutch Shell (LON:RDSa) gained 0.63%.
Financial stocks traded lower, with shares in HSBC Holdings (LON:HSBA) slipping 0.03% and the Royal Bank of Scotland (LON:RBS) slumping 3.01%%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) dropped 0.33% and 1.26% respectively.
In the U.S., equity markets pointed to a slightly higher open. The Dow Jones Industrial Average futures pointed to a 0.17% rise, S&P 500 futures a 0.20% gain, while the Nasdaq 100 futures indicated a 0.28% advance.