European markets closed higher on Tuesday following good economic data from China and Europe.
|IBEX 35||IBEX 35 Idx||9498.60||79.90||0.85%||220925363|
The pan-European Stoxx 600 provisionally ended up 0.61 percent with most sectors and bourses trading in positive territory.
Investors began 2017 in a confident mood after solid manufacturing activity data in Europe and China. On Tuesday morning, data showed French inflation reaching its highest level since May 2014. French consumer prices increased 0.8 percent year-on-year, driven essentially by an increase in energy prices.
Banking stocks were comfortably the best performers on Tuesday, jumping more than 2.8 percent. Shares of the newly merged BPM bank in Italy surged higher for a second consecutive day and closed 7 percent higher. The Italian banking index ended slightly in positive territory despite news that the sale of three small banks could be at risk after the European Commission asked for the process to be delayed by at least a week, Reuters reported.
Meanwhile in the U.S., Wall Street continued higher on its first trading day of the calendar year with the Dow Jones industrial average getting ever closer to the 20,000 mark.
Back in Europe, financial services were up by more than 1.5 percent. Earlier, Euronext said it was offering 510 million euros to buy the French clearing houses of the London Stock Exchange - a much-needed process to ensure the LSE merger with the German bourse.
Basic resources stocks were also higher after figures showed Chinese factory activity growing more than expected in December.
U.K. PMI figures surprise
Data showed British manufacturing figures growing more-than-expected in December. The U.K.'s PMI increased to 56.1 - the highest reading since June 2014. As a result, sterling moved up from 85.01 pence to 84.875 per euro.
Oil prices were trading higher on Tuesday suggesting that investors are relatively positive on the implementation of an OPEC deal to cut production.