European Markets Climb On U.S. Strength

(RTTNews) - The European markets ended Tuesday's session in the green, thanks to a rally in late trade. The strong performance of the U.S. equity markets fueled the late surge in Europe. Automakers and energy stocks were among the best performers, while utilities were weak. Energy stocks climbed on the news that the U.S. House of Representatives will vote on a bill to lift the country's ban on oil exports in a few weeks.

Markets in Europe fluctuated earlier in the day. The weak performance of the Chinese stock market, which dropped by 3.52 percent, and the disappointing German economic confidence report weighed on investor sentiment.

Meanwhile, several economic reports from the United States were in line with expectations, to weaker than expected. Investors are attempting to read into how the data could potentially impact the Federal Reserve's decision on interest rates later this week. Analysts remain split regarding whether the Fed will raise rates for the first time in nearly a decade or keep rates at record lows due to the recent market volatility.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.14 percent.

The DAX of Germany climbed by 0.56 percent and the CAC 40 of France rose by 1.16 percent. The FTSE of the U.K. gained 0.87 percent and the SMI of Switzerland finished higher by 1.20 percent.

In Frankfurt, Evotec advanced by 4.21 percent, after it increased its guidance for the current year.

E.ON sank by 5.93 percent and RWE weakened by 3.14 percent.

BMW finished higher by 2.62 percent. The company halted its press conference at the Frankfurt Motor Show after its Chief Executive Officer Harald Krueger fainted during a presentation on stage. He was able to walk while being escorted off stage.

Daimler rose by 1.61 percent and Volkswagen gained 1.47 percent.

In Paris, building materials firm Saint-Gobain climbed by 1.71 percent. The company has signed an agreement to sell its distribution business, Norandex, in the US to ABC Supply Co.

EDF dropped by 3.58 percent, after it was downgraded by Morgan Stanley to "Underweight."

Total increased by 3.07 percent and Technip added 1.40 percent.

In London, home improvement retailer Kingfisher fell by 2.50 percent after reporting lower pre-tax profit for the first half of the year.

WM Morrison Supermarkets and Sainsbury dropped by 0.25 percent and 0.44 percent, respectively.

Chipmaker ARM Holdings rose by 3.43 percent. The company, which is holding its investor day, outlined certain investments that would result in additional revenues and operating costs.

Experian increased by 1.74 percent, after Deutsche Bank upgraded its rating on the stock to "Buy."

BP gained 2.02 percent and Royal Dutch Shell added 1.21 percent.

Credit Suisse climbed by 1.60 percent in Zurich, on reports that it will pay more than $80 million to settle state and federal authorities' allegations that it didn't fully disclose to its clients how it operated its dark pool.

TomTom surged by 7.07 percent in Amsterdam, after it announced its bookings for 2015 so far exceeded 250 million euros. The company also announced the extension of its cooperation with South Korea's SsangYong Motors in Europe.

Eurozone trade surplus grew for a second straight month in July and exceeded economists' expectations, figures from the Eurostat showed Tuesday. The seasonally adjusted trade balance rose to EUR 22.4 billion from EUR 21.9 billion in June. Economists had forecast a lower figure of EUR 21.4 billion. The latest surplus was the biggest in more than a year.

Employment growth in Eurozone accelerated marginally for the second straight quarter in the three months ended June, figures from Eurostat showed Tuesday. Employment rose a seasonally adjusted 0.3 percent in the second quarter, following a 0.2 percent climb in the previous quarter. In the fourth quarter last year, employment edged up 0.1 percent.

German economic confidence weakened for the sixth consecutive month in September to its lowest level in 10 months, survey data from the Mannheim-based Centre for European Economic Research or ZEW showed Tuesday.

The investor confidence index dropped to 12.1 points in September from 25 in August. The latest reading was the lowest since November 2014, when it was 11.5, and was below the expected score of 18.3.

France's EU measure of inflation slowed in August even as prices rebounded after declining in July, preliminary figures from the statistical office INSEE showed Tuesday. The harmonized index of consumer prices edged up 0.1 percent year-on-year. Economists had expected the measure to climb at July's 0.2 percent pace.

U.K. inflation returned to zero in August, as expected, on a renewed decline in oil prices, and factory gate prices continued its downward trend, casting doubt about the ability of the Bank of England to achieve the inflation target.

Consumer prices remained unchanged in August from a year ago, following a 0.1 percent rise in July, data released by the Office for National Statistics showed Tuesday. The slowdown was caused by a fall in fuel prices and slower growth in clothing costs.

UK house price inflation slowed sharply in July to its weakest level in nearly two years, figures from the Office for National Statistics showed Tuesday.

The house price index rose 5.2 percent year-on-year after a 5.7 percent increase in June. In April and May, house price inflation was 5.6 percent. The latest figure was the lowest since September 2013, when house prices rose 3.8 percent.

After reporting a notable increase in U.S. retail sales in the previous month, the Commerce Department released a report on Tuesday showing a modest uptick in sales in the month of August. The report said retail sales edged up by 0.2 percent in August following an upwardly revised 0.7 percent increase in July.

Economists had expected retail sales to rise by 0.3 percent compared to the 0.6 percent growth originally reported for the previous month.

Industrial production in the U.S. pulled back by more than expected in the month of August, according to a report released by the Federal Reserve on Tuesday. The Fed said industrial production fell by 0.4 percent in August following an upwardly revised 0.9 percent increase in July.

Economists had expected production to dip by 0.2 percent compared to the 0.6 percent growth originally reported for the previous month.

Business activity for New York manufacturers has continued to contract in the month of September, according to a report released by the Federal Reserve Bank of New York on Tuesday. The New York Fed said its general business conditions index inched up to a negative 14.7 in September from a negative 14.9 in August, with a negative reading indicating a contraction in manufacturing activity.

Economists had expected the general business conditions index to show a more substantial improvement to a reading of negative 0.5.

With an increase in retail inventories partly offset by decreases in manufacturing and wholesale inventories, the Commerce Department released a report on Tuesday showing a modest uptick in total business inventories in the month of July.

The report said business inventories inched up by 0.1 percent in July following a downwardly revised 0.7 percent increase in June. The modest increase matched economist estimates.