Investing.com - European stocks pushed higher in subdued trade on Tuesday, after the announcement of a fresh round of sanctions against Russia and as markets eyed the Federal Reserve's policy statement due on Wednesday.
During European afternoon trade, the DJ Euro Stoxx 50 gained 0.73%, France’s CAC 40 climbed 0.60%, while Germany’s DAX advanced 0.55%.
On Monday, European leaders, along with the U.S. President Barack Obama, announced a fresh round of sanctions against Moscow, including penalties against the country's financial, defense and energy sectors.
These measures are in reaction to Russia's alleged involvement in the violence in eastern Ukraine and the downing of a passenger jet earlier in the month. Representatives from the European Union were set to meet again on Tuesday to reach a final deal on the sanctions.
Financial stocks turned mostly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rose 0.04% and 0.42%, although Germany's Deutsche Bank (XETRA:DBKGn) declined 0.32% after reporting that second quarter pretax profit climbed 16%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) gained 0.83% and 1.38% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) advanced 0.40% and 0.59%.
Elsewhere, Michelin (PARIS:MICP) jumped 1.32%, erasing earlier losses posted after the tiremaker reported lower than forecast first-half earnings.
Airbus Group (PARIS:AIR) retreated 0.67%, after the group said it terminated an order for six A380s from Skymark Airlines.
In London, commodity-heavy FTSE 100 climbed 0.43%, still supported by gains in the mining sector.
Shares in Glencore Xstrata (LONDON:GLEN) and Bhp Billiton (LONDON:BLT) rose 0.32% and 0.36%, while rivals Rio Tinto (LONDON:RIO) and Fresnillo (LONDON:FRES) jumped 0.99% and 1.06% respectively.
In the financial sector, stocks also remained broadly higher. The Royal Bank of Scotland (LONDON:RBS) edged up 0.27% and Lloyds Banking (LONDON:LLOY) climbed 0.48%, while Barclays (LONDON:BARC) and HSBC Holdings (LONDON:HSBA) advanced 0.58% and 0.73%.
Meanwhile, BP (LONDON:BP) turned lower, dropping 0.90% even after the oil and gas major reported a 34% increase in second-quarter profit.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures pointed to a 0.04% dip, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.02% downtick.
Later in the day, the U.S. was to publish reports on house price inflation and consumer confidence.