Investing.com - European stocks were higher on Tuesday, amid growing expectations for additional easing measures by the European Central Bank ahead of its monthly policy meeting scheduled on Thursday.
During European morning trade, the EURO STOXX 50 rose 0.28%, France’s CAC 40 climbed 0.50%, while Germany’s DAX 30 edged up 0.08%.
European equities remained supported after data on Friday showed that the annual rate of euro area inflation slowed to a five year low of 0.3% last month, down from 0.4% in October.
The weak data added to pressure on the ECB to step up measures to spur growth and stave off the threat of deflation ahead of its upcoming policy meeting on Thursday.
Earlier Tuesday, official data showed that the number of unemployed people in Spain declined by 14,700 in November, compared to expectations for an increase of 57,300, after a 79,200 rise in October.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.83% and 0.24%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) advanced 0.63% and 0.12%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo climbed 0.60% and 0.68%, while Spanish banks Banco Santander (MADRID:SAN) and BBVA rose 0.18% 0.46%.
On the downside, Neopost (PARIS:NPOS) saw shares dive 15.35% after the French manufacturer of mailing and shipping equipment said organic revenue this year will be close to stagnant, compared with a previous target of 1% to 3% growth.
In London, FTSE 100 jumped 0.99%, supported by sharp gains in energy stocks, as they regained traction after posting steep losses late last week when the Organization of Petroleum Exporting Countries decided to keep its output target unchanged.
Shares in oil and gas major BP (LONDON:BP) rallied 2.15% and BG Group surged 2.67%, while Tullow Oil (LONDON:TLW) led gains on the commodity-heavy index with shares up 4.94%.
Among mining companies, Rio Tinto jumped 1.93% and Glencore Xstrata (LONDON:GLEN) gained 2.09%, while rivals Fresnillo (LONDON:FRES) and Bhp Billiton climbed 2.43% and 3.02% respectively.
In the financial sector, stocks were also broadly higher. Shares in Lloyds Banking rose 0.46% and Barclays advanced 1%, while the Royal Bank of Scotland and HSBC Holdgings rallied 1.18% and 1.35%.
Aviva (LONDON:AV) added to gains, with shares up 0.15% after the insurance company agreed to buy Friends Life Group (LONDON:FLG) for about £5.6 billion in stock, marking the U.K. insurance industry’s biggest takeover in 15 years. Shares in Friends Life were up 1.98% following the news.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.23% increase, S&P 500 futures signaled a 0.18% gain, while the Nasdaq 100 futures indicated a 0.19% rise.