Investing.com - European stocks traded higher on Tuesday as strong readings in Chinese data and positive corporate news in Italy buoyed risk appetite.
Near midday in European trade, the Euro Stoxx 50 gained 1.07%, France’s CAC 40 rose 0.80%, while Germany’s DAX 30 traded up 0.86%.
Data out overnight from China beat expectations, bolstering optimism over the strength of the world’s second largest economy.
November retail sales jumped 10.8%, beating consensus expectations for a 10.1% rise, while China’s industrial production during the same both increased 6.2%, ahead of forecasts for an unchanged reading of 6.1%.
In Europe, the German ZEW economic sentiment missed expectations in December, but the improvement in current conditions indicator, at its highest level since September 2015, served to make the overall reading positive.
The economic sentiment for the euro zone as a whole also jumped to 18.1, beating expectations for a lesser rise to 16.5.
In the U.K., annual inflation rose more than expected with the 1.2% advance reflecting price pressures from a weaker sterling.
In corporate news, Mediaset (MI:MS) soared 20% as rival media company Vivendi (PA:VIV) revealed its building its stake in the Italian broadcaster, sparking speculation over a hostile takeover.
In Italian banks, Unicredit (MI:CRDI) jumped more than 7% on its announcement of a €13 billion ($13.8 billion) share issue to strengthen its balance sheet.
Meanwhile, oil prices stabilized on Tuesday after investors took profit on the back of a powerful rally in the previous session that propelled prices to the highest levels since mid-2015 after major producers reached a deal to cut output in a bid to rebalance the oversupplied global market.
Energy stocks were mostly higher, as French oil and gas major Total SA (PA:TOTF) gained 0.11% and Italy’s ENI (MI:ENI) advanced 0.95%, though Norwegian rival Statoil (OL:STL) fell 0.32%.
Financial stocks traded mixed, as French lenders BNP Paribas (PA:BNPP) rose 1.20% and Societe Generale (PA:SOGN) gained 1.46%, while Germany’s lenders Commerzbank (DE:CBKG) inched up 0.07% and Deutsche Bank (DE:DBKGn) traded up 2.61%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 1.88% and 7.26% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) traded up 1.68% and 1.33%, respectively.
In London, the commodity-heavy FTSE 100 edged forward 0.39%, lagging European counterparts on weakness in the mining sector.
Shares in Glencore (LON:GLEN) lost 1.27% and Anglo American (LON:AAL) fell 1.24%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) traded down 1.61% and 1.52% respectively.
Energy stocks showed mixed returns, as BP (LON:BP) slipped 0.09% and rival Royal Dutch Shell (LON:RDSa) advanced 0.27%.
Financial stocks traded higher. Shares in HSBC Holdings (LON:HSBA) gained 0.64% and the Royal Bank of Scotland (LON:RBS) rose 0.56%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) lost 0.80% and 0.56% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.36% gain, S&P 500 futures a 0.28% advance, while the Nasdaq 100 futures indicated a 0.35% increase.