Investing.com – European equities started August off on the right foot, moving higher after two straight months of declines thanks to a positive flow of earnings released on Monday and while digesting mixed economic data.
Nearing midday trade in Europe, the benchmark Euro Stoxx 50 gained 0.41%, France’s CAC 40 rose 0.55% while Germany’s DAX 30 advanced 0.53%.
Intertek Group PLC (LON:ITRK) and Rolls Royce (LON:RR) led advancers on the pan-European Stoxx 600 with gains of around 9% after the British firms reported better-than-expected profit.
UK firms dominated gains on Tuesday as CYBG PLC (LON:CYBGC), Direct Line Insurance Group PLC (LON:DLGD), Man Group Plc (LON:EMG) and BP PLC (LON:BP) all reported earnings that pleased investors.
Outside the UK, DSM NV (AS:DSMN) rose more than 5% after the Dutch chemicals company reported a 42% increase in profit and raised its 2017 guidance.
On the economic front, market players digested mixed data on manufacturing activity.
In the euro zone, activity in the sector unexpectedly slowed, though the 56.6 reading was still the region’s 49th consecutive month of expansion for its factories.
In the UK, the manufacturing purchasing managers’ index (PMI) rose more than expected as exports boosted new order intakes.
Gross domestic product (GDP) in the euro area rose by 0.6% in the second quarter, in line with expectations. However, the annualized increase of 2.1% missed forecasts for growth of 2.4%.
Meanwhile, oil prices continued higher on Tuesday, extending gains into a seventh session as investors continued to cheer signs that the global market was starting to rebalance.
European energy stocks traded higher, as French oil and gas major Total SA (PA:TOTF) rose 1.65%, Italy’s ENI (MI:ENI) gained 1.27% and Norwegian rival Statoil (OL:STL) traded up 1.02%.
Financial stocks also rose, as French lenders BNP Paribas (PA:BNPP) gained 1.63% and Societe Generale (PA:SOGN) advanced 0.67%, while Germany’s Deutsche Bank (DE:DBKGn) and rival Commerzbank (DE:CBKG) traded up 1.26% and 0.27%, respectively.
Among peripheral lenders, Italian banks Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rose 0.27% and 0.12%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) traded up 1.44% and 1.09%, respectively.
In London, the commodity-heavy FTSE 100 advanced 0.80%, leading European indices higher as UK data beat expectations.
Shares in Glencore (LON:GLEN) gained 1.14%, Anglo American (LON:AAL) lost 0.27%, BHP Billiton (LON:BLT) inched up 0.07% and Rio Tinto (LON:RIO) advanced 0.48%.
Energy stocks moved higher, as BP (LON:BP) spiked 3.48% after earnings and rival Royal Dutch Shell (LON:RDSa) rose 0.54%.
Financial stocks returned gains, as shares in HSBC Holdings (LON:HSBA) rose 1.20%, Royal Bank of Scotland (LON:RBS) advanced 1.13%, Lloyds Banking (LON:LLOY) advanced 0.14% and Barclays (LON:BARC) traded up 1.48%.
In the U.S., stock futures pointed to a higher open. The Dow Jones Industrial Average futures rose 0.48%, S&P 500 futures gained 0.28%, while the Nasdaq 100 futures advanced 0.45%.