Investing.com - European stocks were sharply higher on Tuesday, boosted by gains in financial stocks as the results of the European Central Bank's latest stress tests continued to support, while markets continued to focus on corporate earnings reports.
During European morning trade, the DJ Euro Stoxx 50 advanced 0.96%, France’s CAC 40 climbed 0.64%, while Germany’s DAX jumped 1.37%.
European equities remained support after the European Central Bank announced the results of yearlong tests to assess the finances on 150 banks on Sunday. Overall, 25 banks were found to have a capital shortfall, but most have already taken steps to resolve this, the ECB said.
But investors remained cautious as German research institute Ifo said on Monday that its index of business climate slid to 103.2 this month from 104.7 in September. It was the lowest level in almost two years and was below forecasts of 104.3.
Market participants were now eyeing the conclusion of the Federal Reserve's two day meeting on Wednesday for any indications that a slowdown in growth in Europe or China could prompt the U.S. central bank to delay possible rate hikes.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) jumped 1.51% and 1.42%, while Germany's Deutsche Bank (XETRA:DBKGn) gained 0.99%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) rallied 1.70% and 1.80% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) advanced 1.11% and 1.22%.
Elsewhere, Sanofi (PARIS:SASY) plunged 6.76% after the Paris-based drugmaker said third-quarter profit climbed 10%, meeting analysts' estimates.
In London, FTSE 100 gained 0.63%, led by Mondi (LONDON:MNDI), up 2.28% after the stock was given a consensus rating of "buy" by a group of borkerages.
Financial stocks added to gains, as the Royal Bank of Scotland (LONDON:RBS) rose 0.45% and Barclays (LONDON:BARC) climbed 0.58%, while HSBC Holdings (LONDON:HSBA) advanced 0.78%.
Lloyds Banking (LONDON:LLOY) underperformed however, with shares tumbling 1.69% after the U.K. lender reported a 41% rise in third-quarter profit, exceeding analysts' estimates.
In the mining sector, stocks were broadly higher. Shares in Fresnillo (LONDON:FRES) and Bhp Billiton (LONDON:BLT) climbed 0.67% and 0.84%, while rivals Rio Tinto (LONDON:RIO) and Glencore Xstrata (LONDON:GLEN) rallied 1.11% and 1.24% respectively.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.46% increase, S&P 500 futures signaled an 0.54% gain, while the NASDAQ 100 futures indicated a 0.59% climb.
Later in the day, the U.S. was to release data on durable goods orders and a report by the Conference Board on consumer confidence.