Investing.com - European stocks were higher on Tuesday, supported by comments by European Central Bank President Mario Draghi, while markets eyed German economic sentiment data to be released later in the trading session.
During European morning trade, the DJ Euro Stoxx 50 climbed 0.54%, France’s CAC 40 rose 0.39%, while Germany’s DAX gained 0.69%.
European equities found support after ECB President Mario Draghi reiterated Monday that the bank was willing to implement additional stimulus measures to prevent low levels of inflation from becoming entrenched.
In testimony to the European Parliament Mr. Draghi said the central bank could expand its asset purchase program to include government bonds.
Global equities had weakened before Draghi's remarks, weighed by data showing that Japan’s gross domestic product contracted by an annualized 1.6% in the third quarter, following a 7.3% decline in the previous quarter. Economists had forecast a 2.3% increase.
Financial stocks were mostly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) climbed 0.91% and 0.70%, although Germany's Deutsche Bank (XETRA:DBKGn) eased 0.09%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.83% and 1.02% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) rose 0.11% and 0.42%.
Automakers added to gains, after data showed that European car sales increased by 6.2% in October. Shares in German groups Volkswagen (XETRA:VOWG) and Daimler (XETRA:DAIGn) climbed 0.75% and 0.79%, while French rivals Peugeot (PARIS:PEUP) and Renault (PARIS:RENA) rallied 1.12% and 1.44% respectively.
In London, FTSE 100 added 0.37%, led by Royal Mail (LONDON:RMG), up 1.73% after the postal service company said it delivered first and second class letters ahead of its target in the first half of the current financial year.
Meanwhile, financial stocks were mixed. Shares in Lloyds Banking (LONDON:LLOY) added 0.21% and Barclays (LONDON:BARC) rose 0.33%, while HSBC Holdings (LONDON:HSBA) slipped 0.20% and the Royal Bank of Scotland (LONDON:RBS) fell 0.26%.
In the mining sector, stocks were broadly lower as Bhp Billiton (LONDON:BLT) declined 0.45% and Anglo American (LONDON:AAL) dropped 0.78%, while Rio Tinto (LONDON:RIO) and Glencore Xstrata (LONDON:GLEN) retreated 0.95% and 0.96% respectively.
In the U.S., equity markets pointed to a steady to higher open. The Dow 30 futures pointed to a 0.02% uptick, S&P 500 futures signaled an 0.06% gain, while the NASDAQ 100 futures indicated a 0.11% rise.
Later in the day, the ZEW Institute was to publish its closely watched report on German economic sentiment. The U.S. was to release data on producer price inflation.