Investing.com - European stocks were sharply higher on Tuesday, despite concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors, as investors eyed the release of German economic sentiment data due later in the day.
During European morning trade, the EURO STOXX 50 rallied 1.08%, France’s CAC 40 advanced 1.44%, while Germany’s DAX 30 jumped 1.38%.
Investors remained cautious amid concerns that Athens is no closer to reaching an agreement on economic reforms for bailout funds with its creditors, fuelling fears that Greece could be forced out of the euro zone.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) advanced 0.96% and 0.69%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) jumped 0.99% and 1.12%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) climbed 0.69% and 0.71% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) rose 0.26% and 0.59%.
Elsewhere, SAP SE surged 2.51% after the German software company reported first-quarter sales that beat analysts' estimates.
Swiss pharmaceutical group Actelion Ltd (SIX:ATLN) added to gains, with shares soaring 5.65% after it increased its full-year forecast on the heels of better-than-expected first-quarter profit.
In London, FTSE 100 advanced 0.67%, as U.K. lenders tracked their European counterparts higher.
Shares in HSBC Holdings (LONDON:HSBA) edged up 0.15% and Lloyds Banking (LONDON:LLOY) climbed 0.62%, while Barclays (LONDON:BARC) and the Royal Bank of Scotland (LONDON:RBS) gained 0.76% and 1.08% respectively.
SKY plc was one of the top performers on the index, surging 3.94% after the pay-TV provider said nine-month revenue rose 5% as it signed up the most customers in the U.K. and Ireland in 11 years during the third quarter.
Meanwhile, mining stocks were broadly lower. Glencore Xstrata (LONDON:GLEN) slid 0.39% and Bhp Billiton (LONDON:BLT) dropped 0.91%, while Anglo American (LONDON:AAL) lost 1.47% and Rio Tinto (LONDON:RIO) tumbled 1.48%.
Rio Tinto earlier reported that first-quarter iron ore production expanded by a less-than-expected 12%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.59% increase, S&P 500 futures signaled a 0.53% gain, while the Nasdaq 100 futures indicated a 0.63% climb.
Later in the day, the ZEW Institute was to report on German economic sentiment.