Investing.com - European stocks remained higher on Tuesday, after the release of tepid euro zone economic reports, as earlier manufacturing data out of China continued to support market sentiment.
During European afternoon trade, the DJ Euro Stoxx 50 climbed 0.40%, France’s CAC 40 advanced 0.68%, while Germany’s DAX rose 0.32%.
Official data showed that the unemployment rate in the euro zone remained unchanged at 11.6% in May, confounding expectations for an uptick to 11.7%.
Earlier Tuesday, data indicated that the manufacturing recovery in the euro zone is losing momentum.
Markit's euro zone manufacturing purchasing managers' index dipped to a seven-month low of 51.8, down from 52.2 in May. Growth in the German factory sector slowed to an eight month low of 52.0, while the French manufacturing PMI fell to a six-month low of 48.2.
Sentiment improved earlier, after data showed that China’s official manufacturing purchasing managers’ index rose to a six-month high of 51.0 in June, in line with expectations and up from 50.8 in May.
Meanwhile, China’s final HSBC Purchasing Managers Index came in at 50.7, weaker than a preliminary reading of 50.8 but higher than May's 49.4 figure.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) surged 3.25% and 3.95%, while Germany's Deutsche Bank (XETRA:DBKGn) rose 0.35%. Late Monday, BNP Paribas agreed to plead guilty to U.S. sanctions violations and pay $8.97 billion.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1.10% and 1.35% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) gained 0.43% and 0.56%.
Elsewhere, Bilfinger (XETRA:GBFG) dove 15.83% after the German builder cut its full-year profit forecast.
In London, commodity-heavy FTSE 100 gained 0.52%, led by mining stocks.
Shares in Glencore Xstrata (LONDON:GLEN) jumped 1.23% and Randgold Resources (LONDON:RRS) rallied 2.03%, while rivals Bhp Billiton (LONDON:BLT) and Rio Tinto (LONDON:RIO) surged 2.09% and 2.88% respectively.
Financial stocks were also broadly higher, as HSBC Holdings (LONDON:HSBA) climbed 0.52% and Barclays (LONDON:BARC) advanced 1%, while Lloyds Banking (LONDON:LLOY) saw shares gain 1.29%. The Royal Bank of Scotland (LONDON:RBS) underperformed however, down 0.30%.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.23% gain, S&P 500 futures signaled a 0.19% rise, while the Nasdaq 100 futures indicated a 0.25% increase.
Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.