European Stocks End Mixed; U.K. Rises, France Falls - European Commentary

(RTTNews) - European stocks put in a mixed performance on Tuesday. The U.K. posted a modest advance. However, France posted losses, while Germany eked out a thin gain.

A report on U.K. inflation showed a reading below the central bank's target, the first time this had happened since 2009. This helped bolster shares in the country.

Meanwhile, the markets also weighed a disappointing investor confidence report from Germany.

The U.K.'s FTSE 100 index advanced 60.43 points, or 0.9 percent, to close at 6,796.43. Germany edged higher by 3.02 points, or less than 0.1 percent, to end at 9,659.78. France's CAC 40 slipped 4.46 points, or 0.1 percent, to close at 4,330.71.

Figures from the Office for National Statistics showed that inflation eased unexpectedly to 1.9 percent in January from 2 percent in December. The rate was expected to remain at 2 percent.

Germany's investor confidence deteriorated sharply in February, and to a larger extent than expected by economists, data from the ZEW indicator of economic sentiment showed. Economic sentiment fell to 55.7 in February from 61.7 in January. The score was expected to drop modestly to 61.5.

figures from the Office for National Statistics showed. Inflation eased unexpectedly to 1.9 percent in January from 2 percent in December. The rate was expected to remain at 2 percent.

In the afternoon, European investors reacted to economic data out of the U.S. Two major reports were released about the world's biggest economy, with the data pointing to slowdowns in the manufacturing and in the housing sectors.

The New York Federal Reserves' Empire State index fell to 4.48 for February, compared to a reading of 12.51 for January. The index is a key regional manufacturing measure covering business activity in the State of New York, one of the most economically important states in the U.S.

Any reading above zero indicates expansion in the sector. January's decline suggests that manufacturing in New York State continued to expand during the month, but at a slower pace. Moreover, the slackening was more severe than economists had predicted. Experts had expected a reading of 8.5.

A separate report suggested sagging confidence in the U.S. home building sector. The National Association of Home Builders said its housing market index slipped to 46 in February compared to a reading of 56 in the previous month.