Investing.com - European stocks gained ground on Tuesday, after the release of positive Spanish service sector data and as markets awaited the European Central Bank's upcoming policy meeting.
During European morning trade, the DJ Euro Stoxx 50 climbed 0.64%, France’s CAC 40 gained 0.78%, while Germany’s DAX advanced 0.84%.
Markit research group said that Spain's services purchasing manager's index rose to 56.2 last month, from a reading of 54.8 in June, compared to expectations for an increase to 55.1.
Meanwhile, investors remained cautious ahead of the conclusion of the ECB’s monthly monetary policy review on Thursday, amid concerns over the diverging monetary policy stance between the central bank and its major peers.
Data late last week showing that the annual rate of inflation in the euro area slowed to 0.4% in July from 0.5% in June added to pressure on the ECB to implement further easing measures to avert the risk of deflation in the region.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) climbed 0.50% and 0.97%, while Germany's Commerzbank (XETRA:CBKG) rose 0.28%.
Paris-based Credit Agricole (PARIS:CAGR) surged 5.69% after saying profit was almost wiped out in the second quarter on charges tied to its stake in Portugal’s bailed-out Banco Espirito Santo.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) jumped 1.44% and 1.82% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) gained 0.31% and 0.49%.
Elsewhere, Telefonica (MADRID:TEF) tumbled 1.33% after the Spanish phone company offered to buy Vivendi (PARIS:VIV)'s Brazilian Internet-provider unit GVT for €6.7 billion.
In London, FTSE 100 climbed 0.53%, led by Aggreko (LONDON:AGGK), up 4.07%, after temporary power-and-temperature control group reported a 10% fall in first-half 2014 pretax profit, but said it still expects the full-year underlying profit to be at similar levels to 2013.
Financial stocks were also mostly higher, as the Royal Bank of Scotland (LONDON:RBS) rose 0.31% and Lloyds Banking (LONDON:LLOY) gained 0.42%, while HSBC Holdings (LONDON:HSBA) advanced 0.52% as the lender's Chief Executive Officer Stuart Gulliver said strengthening economic growth and rising interest rates should help bolster revenue in 2015.
The comments came after HSBC reported weaker first-half profit.
On the downside, Intercontinental (LONDON:IHG) saw shares plummet 2.52% after the hotel operator said first-half profit dropped 8% due to a decline in revenue.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.03% loss, while the Nasdaq 100 futures indicated a 0.02% dip.
Later in the day, the euro zone was to release data on retail sales. The U.S. was to publish data on factory orders, while the Institute of Supply Management was to release data on service sector growth.