European Stocks Close Mostly Higher

(RTTNews) - European stocks closed mostly higher on Tuesday, gaining in strength after a cautious start, with investors digesting a slew of regional economic data, and looking ahead to fresh data from the U.S. for clues about the outlook for Federal Reserve's interest rates.

Dovish comments from an ECB official aided sentiment a bit. Key ECB official Isabel Schnabel declined to rule out interest-rate cuts next year in an interview published Tuesday, raising odds, the central bank will cut rates next year.

The pan European Stoxx 600 climbed 0.4%. Germany's DAX surged 0.78% and France's CAC 40 gained 0.74%, while the U.K.'s FTSE 100 ended down 0.31%. Switzerland's SMI edged up 0.11%.

Among other markets in Europe, Belgium, Czech Republic, Iceland, Netherlands, Norway, Poland, Russia, Spain and Sweden closed higher.

Denmark, Finland, Greece and Turkiye ended weak, while Austria and Portugal settled flat.

In the UK market, Ferguson and BT gained about 3.8% and 3.6%, respectively. British Land Company, Segro, TUI, Whitbread, Hikma Pharmaceuticals, ICP, J Sainsbury, Scottish Mortgage, Experian, Carnival and Tesco gained 1.3 to 2%.

ValiRx Plc ended with a hefty gain of nearly 13%. The life science company announced that ValiSeek Limited has entered into an exclusive Option Agreement to license VAL401 with Ambrose Healthcare Limited, a private UK specialist pharmaceutical company.

Anglo American Plc drifted down more than 4%. Ashtead Group, Fresnillo, Antofagasta and Barclays Group lost 2 to 3.6%. Smurfit Kappa Group, British American Tobacco, Centrica, Prudential, IAG, Easyjet and Glencore also ended notably lower.

In the German market, Daimler Truck Holding rallied 3.7%. Siemens Energy gained about 3% and Bayer climbed 2.7%. Mercedes-Benz, Deutsche Post, Allianz, Siemens, Deutsche Boerse, BMW, Vonovia and Continental advanced 1.2 to 1.8%.

Fresenius, Sartorius and Fresenius Medical Care ended nearly 2% down.

In Paris, BNP Paribas gained about 2.3%, buoyed by an order win from Goldman Sachs to provide custoty and settlement services for assets in Austria.

Unibail Rodamco gained nearly 2% following the placement of €750 million in green bonds. A 'buy' recommendation by Goldman Sachs also contributed to the stock's uptick.

LVMH, Vinci, STMicroElectronics, Saint Gobain, Air Liquide, Legrand, Schneider Electric, Hermes International, Michelin and Capgemini ended higher by 1 to 2%.

Alstom, Renault, Thales and Safran closed weak.

In economic news, a report from S&P Global said The HCOB Eurozone Services PMI was revised higher to 48.7 in November 2023 from a preliminary of 48.2, compared to 47.8 in October.

The HCOB Eurozone Composite PMI was revised higher to 47.1 in November 2023, up from a preliminary estimate of 47.1 and above October's 35-month low of 46.5.

A report from Eurostat showed industrial producer prices in the Euro Area rose by 0.2% month-over-month in October 2023, following a 0.5% increase in September and matching market expectations. It was the third consecutive month of increases in producer prices. Year-on-year, industrial producer prices dropped by 9.4% in October, following a record 12.4% decline in September.

Meanwhile, the European Central Bank said in a report that median consumer expectations for Euro Area inflation over the next one year remained unchanged at 4% in October.

Data from S&P Global showed the HCOB Germany Services PMI was revised sharply higher to 49.6 in November from a preliminary reading of 48.7, compared to 48.2 in October.

The HCOB Germany Composite PMI was revised upward to 47.8 in November, from a preliminary estimate of 47.1. The reading came in at 45.9 in October.

Data from statistical office INSEE showed industrial production in France fell 0.3% month-on-month in October, falling for a third successive month, following an upwardly revised 0.6% slump in September. Year-on-year, industrial production increased 1.9% in October, after a 0.3% drop in September.

The HCOB France Services PMI came at 45.4 in November 2023, compared to October's 45.2 and initial estimates of 45.3.

The HCOB France Composite PMI was revised marginally up to 44.6 in November 2023, from the flash estimate of 44.5 and matching the reading seen in October. The reading marked a sixth straight month of contraction.