PMIs at 7-month high
|IBEX 35||IBEX 35 Idx||8577.20||109.20||1.29%||106778372|
The pan-European STOXX 600 jumped 1 percent by the close provisionally, supported by a positive trading session on Wall Street.
On the bourses front, the U.K.'s FTSE 100 popped 0.7 percent, the French CAC 40 ticked up 0.8 percent while the German DAX finished up 1 percent. All sectors finished in the black.
The euro zone economy accelerated marginally in August, according to Markit's euro zone composite purchasing managers' index (PMI), which came in at a seven-month high. The flash reading came in at 53.3, up from 53.2 in July.
Aside from data, markets are in wait-and-see mode ahead of a speech on Friday by U.S. Federal Reserve chair Janet Yellen at Jackson Hole and clues about the timing of the next U.S interest rate hike.
Fed Chair Janet Yellen will give a speech at the Federal Reserve Bank of Kansas City's annual Economic Policy Symposium at Jackson Hole, Wyoming on Friday. Traders are hoping this will give clues on the timing of a U.S. rate hike.
Several Fed officials have commented on the timing of a rate hike, while Fed Vice-Chairman Stanley Fischer said on Sunday that the U.S. central bank was close to hitting its targets for full employment and 2 percent inflation. Still, analysts don't expect an interest rate hike next month.
"The fact it is currently fairly obvious that Fed officials remain divided about the timing of when rates are likely to rise ... means any decision in September still remains highly unlikely," Michael Hewson, chief market analyst at CMC Markets, said in a note.
Oil recovers but miners speed ahead
The oil price slide seen during most of Europe's trade didn't appear to dampen sentiment in markets. Both Brent and U.S. crude however reversed losses to trade higher, after Reuters reported Iran is sending positive signals that it may support joint action to prop up the oil market, citing sources in OPEC and the oil industry.
Meanwhile, basic resources stocks got a boost after Jefferies said in a note that there are fundamental improvements in the mining sector with demand stabilizing and supply declining in several metals. The broker raised its price target for BHP Billiton and Glencore sending shares in both stocks above 2 percent each.
UK housebuilders rally
U.K. homebuilder Persimmon outperformed most stocks on Tuesday, last standing 4 percent up, after it said first-half profit rose 29 percent, helping push other names in the sector such as Taylor Wimpey, Bellwayand Bovis Homes Group higher.
Reuters reported that the chief executive of Polish insurer PZU is flying to Milan for talks to acquire Bank Pekao from Unicredit. Shares of the Italian bank rallied 6 percent. The news boosted several Italian banks, including Intesa Sanpaolo and Banco Popolare.
Meanwhile, Renault was near the bottom of the STOXX 600 after theFinancial Times reported that the French government's report on the carmaker's emission probe left out crucial details.
However Volkswagen shares shot up over 2.5 percent after it said the two auto parts suppliers, with which it had been locked in a contract dispute, had agreed to start delivering parts again and that production would resume, according to Reuters.
Elsewhere, Swiss watch exports fell 20.5 percent in July year-on-year, sending shares of Swatch into negative territory.