Investing.com - European stocks closed slightly higher Tuesday, as strong U.S. economic data and Greek optimism lifted equity sentiment on the session
At the close of European trade, the EURO STOXX 50 rose 0.04%, France’s CAC 40 added 0.03%, while Germany’s DAX 30 advanced 0.55%.
Pushing shares higher, U.S. consumer confidence rose to the highest level since February 2008 in November, industry data showed on Thursday.
In a report, the Conference Board, a market research group said its index of consumer confidence rose to 73.7 in November from a reading of 73.1 in October, whose figure was revised up from 72.2.
Analysts had expected the index to decline to 73.0 in November.
In addition, The S&P/Case-Shiller home price index rose more-than-expected in September, increasing for the sixth consecutive month, industry data showed on Tuesday.
In a report, Standard & Poor’s with Case-Shiller said its house price index rose at an annualized rate of 3.0% in September from a year earlier, above expectations for a 2.9% increase.
U.S. home prices in August rose by an unrevised 2.0%.
Market sentiment strengthened earlier after euro zone finance ministers, the European Central Bank and the International Monetary Fund reached an agreement in a meeting that wrapped up early Tuesday in Brussels to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
Other measures included an extension of loan maturities, a cut in the interest rates that Greece is paying on the loans from its international partners, as well as a debt buyback.
Athens was also cleared to receive a much-needed EUR34.4 billion loan installment in December, easing fears over a messy near-term default and potential exit from the euro zone.
Eurogroup Chairman Jean-Claude Juncker said euro zone ministers would formally approve the release of the aid payment on December 13.
However, market players remained cautious as the latest agreement does not offer a fundamental resolution to the euro zone's debt crisis.
Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Republicans in the U.S. Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Shares in the financial sector held on to broad gains, with Germany’s Deutsche Bank and Commerzbank jumping 2.3% and 2.2% respectively, while France’s Societe Generale and Credit Agricole tacked on 2.5% and 1.5% apiece.
In France, spirits maker Remy Cointreau rallied 7.9% after saying first-half adjusted operating profit rose to EUR141.5 million, above expectations for EUR137.3 million.
Elsewhere, in London, the FTSE 100 closed higher by 0.22%, after data showed the U.K. economy expanded by 1% in the third quarter, unchanged from a preliminary estimate.
Financial sector stocks led gains, with Royal Bank of Scotland climbing 3.9%, Lloyds Banking Group rising 2.85% and Barclays up 1.4%.
Meanwhile, in the U.S., equity markets traded mixed midsession with the Dow Jones Average off 0.03%, the S&P 500 higher by 0.14% and the tech heavy Nasdaq up 0.17%.
Investors are anticipating U.S new home sales and the beige book report on Wednesday.