European Markets Rallied After Energy Rebound

(RTTNews) - The European markets finished sharply higher Tuesday, snapping its recent losing streak. Energy stocks provided a boost, after crude oil prices rebounded from multi-year lows. The rally was broad based, with strong performances by resources, luxury goods, financial and automotive stocks. Investors are eagerly anticipating tomorrow's announcement from the Federal Reserve, which will come after the European close. The Fed is widely expected to announce an interest rate hike upon the conclusion of its two day policy meeting.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 3.26 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 3.09 percent.

The DAX of Germany climbed 3.07 percent and the CAC 40 of France rose 3.16 percent. The FTSE of the U.K. gained 2.45 percent and the SMI of Switzerland finished higher by 2.46 percent.

In Frankfurt, Dialog Semiconductor fell 1.05 percent after it slashed its fourth-quarter revenue outlook.

E.ON advanced 4.62 percent and fellow utility RWE added 3.84 percent.

Commerzbank increased 4.20 percent and Deutsche Bank gained 3.03 percent.

BMW rose 3.04 percent and Daimler climbed 3.37 percent. Volkswagen also finished higher by 1.74 percent.

In Paris, Sanofi climbed 5.34 percent. The drug-maker and Boehringer Ingelheim have entered into exclusive negotiations to swap businesses.

Car parts maker Faurecia surged 6.94 percent after agreeing to sell a division to Plastic Omnium, which soared 8.91 percent.

Peugeot increased 3.26 percent and Renault gained 2.90 percent. Valeo also advanced 4.33 percent.

BNP Paribas rose 4.32 percent and Societe Generale added 3.51 percent. Credit Agricole also closed up by 3.11 percent.

In London, Glencore advanced 2.96 percent. JP Morgan upgraded its rating on the stock to "Overweight" from "Neutral."

UBM increased 5.69 percent after announcing the sale of PR Newswire.

J Sainsbury rose 5.23 percent and Wm Supermarkets added 4.92 percent. Tesco also finished higher by 4.37 percent.

Hennes and Mauritz gained 3.28 percent in Stockholm, after reporting sales data for November.

German economic confidence improved to a five-month high in December as investors expect the asset purchase program of the European Central Bank to boost recovery, the survey carried out by the Mannheim-based Centre for European Economic Research, or ZEW showed Tuesday.

The ZEW Indicator of Economic Sentiment rose a more-than-expected 5.7 points to 16.1 in December. This was the highest score since July, when it was 29.7 and also above the consensus estimate of 15.

Employment growth in Eurozone eased slightly in the three months ended September, after accelerating in the prior quarter, figures from Eurostat showed Tuesday. Employment rose a seasonally adjusted 0.3 percent quarterly in the third quarter, slower than the 0.4 percent increase in the second quarter. In the first quarter of this year, the growth rate held steady at 0.2 percent.

Europe's passenger car registration growth increased notably in November, the European Automobile Manufacturers Association reported Tuesday. Car registrations advanced 13.7 percent in November from last year, marking the 27th consecutive month of growth. In October, sales had increased only 2.9 percent.

U.K. inflation turned positive for the first time in four months in November largely driven by transport costs, while factory gate prices continued its downward trend on lower crude oil cost. Consumer prices edged up 0.1 percent year-on-year in November, reversing a 0.1 percent fall in October, the Office for National Statistics said Tuesday.

The annual rate came in line with expectations. Inflation continues to remain well below the central bank's 2 percent target.

U.K. house price inflation accelerated for the third straight month in October to the highest level in seven months, figures from the Office for National Statistics showed Tuesday. The house price index rose 7.0 percent year-over-year in October, faster than the 6.1 percent hike in the previous month.

Despite a notable decrease in energy prices, the Labor Department released a report on Tuesday showing that U.S. consumer prices were flat in the month of November. The Labor Department said its consumer price index was unchanged in November after rising by 0.2 percent in October. The flat reading matched economist estimates.

New York manufacturing activity contracted for the fifth consecutive month in December, according to a report released by the Federal Reserve Bank of New York on Tuesday, although the pace of decline slowed more than expected.

The New York Fed said its general business conditions index climbed to a negative 4.6 in December from a negative 10.7 in November, but a negative reading continues to indicate a drop in manufacturing activity. Economists had expected the index to rise to a negative 7.0.

Homebuilder confidence in the U.S. has unexpectedly deteriorated in the month of December, according to a report released by the National Association of Home Builders on Tuesday. The report said the NAHB/Wells Fargo Housing Market Index edged down to 61 in December from 62 in November. The drop surprised economists, who had expected the index to inch up to 63.