Europe's main stock markets posted small gains Tuesday on encouraging regional and US economic data as well as earnings on Wall Street.
Turkey was also a focus of attention. The lira sank to a record low of three lira to the euro, as the country remained embroiled in a deep political crisis.
London's FTSE 100 index of top companies rose 0.14 percent to close at 6,766.86 points, amid official data showing Britain's annual inflation rate had fallen to 2.0 percent, reaching the lowest level for more than four years.
In Frankfurt, the DAX 30 climbed 0.32 percent compared with Monday's closing values to end the day at 9,540.51 points, and in Paris the CAC 40 added 0.26 percent to 4,274.20.
European stocks opened on the downside, following Asian markets and heavy losses on Wall Street, but recovered over the course of the day.
"While last night's US sell-off seemed to imply that some investors have concerns about high valuations in US markets, European markets have been remarkably more sanguine despite some early weakness in opening trade," said market analyst Michael Hewson at CMC Markets.
"Stocks have pared the worst losses after some positive Eurozone industrial production data for November showed a much larger rise than markets had anticipated," he added.
Eurozone industrial output rebounded sharply in November, offering some reassurance that a modest recovery remains on track after heavy falls in October, official data showed on Tuesday.
European stocks recovered further as the opening bell on Wall Street approached, to end the day in the green.
US stocks pushed solidly higher on Tuesday after taking a deep plunge on Monday, with support coming in part from better-than-expected earnings at JP Morgan Chase and Wells Fargo.
In midday trading, the Dow Jones Industrial Average added 0.43 percent to 16,328.36 points.
The broad-market S&P 500 rose 0.74 percent to 1,832.70 and the tech-rich Nasdaq jumped 1.18 percent at 4,161.87.
On Monday, the indices suffered losses of more than one percent as investors continued to digest the weak jobs report for December released Friday.
But data showing that US retail sales rose in December over America's crucial holiday shopping season, beat gloomy expectations, and showed the recovery has not stalled.
The Commerce Department said that retail and food services sales totalled $431.9 billion, up 0.2 percent from November.
Consumer spending is the prime driver of the US economy, so there was concern when analysts forecast flat retail sales month-over-month in December.
"US retailers, in general, appeared to have had a holly jolly Christmas last year," said BMO Capital Markets economist Jennifer Lee.
She noted that excluding auto sales jumped 0.7 percent, the largest monthly increase in 10 months.
"That is three straight months of solid increases, which suggest that Americans spent at their fastest pace in three years," said Lee, although she noted the gains are not spectacular.
US banks' earnings season underway
US banking giant JPMorgan Chase reported a 7.2-percent drop in fourth-quarter earnings to $5.3 billion on revenues of $23.16 billion. The results included another charge related to legal settlements.
On the positive side, the results returned JPMorgan to profitability after a loss in the third quarter when a $9.15 billion charge on legal expenses left the company with a rare quarterly loss.
Its shares were down 0.1 percent to $57.64 in midday trading.
Meanwhile, Wells Fargo reported a 10.5-percent rise in earnings as improving credit quality and growth in overall loans offset lower mortgage revenues.
Wells Fargo, known as the nation's largest mortgage lender, said net income for the fourth quarter came in at $5.4 billion on revenues of $20.7 billion, up from $4.9 billion on revenues of $21.9 billion.
Its shares were flat $45.55.
And General Motors said that it sold 9.71 million cars last year, an increase of 4 percent, beating out rival carmaker Volkswagen but likely only holding onto second place behind world leader Toyota.
GM shares accelerated 1.2 percent to $40.06.
In foreign exchange trading, the euro edged up to $1.3677 from $1.3670 late on Monday in New York.
The European single currency fell to 83.12 British pence from 83.41 pence Monday. The British pound rose to $1.6456 from $1.6367.
Gold prices slipped to $1,251.50 an ounce from $1,257 Monday on the London Bullion Market.
Asian markets mostly suffered a sell-off after heavy losses on Wall Street on Monday fuelled by worse-than-expected US jobs figures.
Europe’s main stock markets posted small gains Tuesday on encouraging regional and US economic data as well as earnings on Wall Street.
Turkey was also a focus of attention. The lira sank to a record low of three lira to the euro, as the country remained embroiled in a deep political crisis.
London’s FTSE 100 index of top companies rose 0.14 percent to close at 6,766.86 points, amid official data showing Britain’s annual inflation rate had fallen to 2.0 percent, reaching the lowest level for more than four years.
In Frankfurt, the DAX 30 climbed 0.32 percent compared with Monday’s closing values to end the day at 9,540.51 points, and in Paris the CAC 40 added 0.26 percent to 4,274.20.
European stocks opened on the downside, following Asian markets and heavy losses on Wall Street, but recovered over the course of the day.
“While last night’s US sell-off seemed to imply that some investors have concerns about high valuations in US markets, European markets have been remarkably more sanguine despite some early weakness in opening trade,” said market analyst Michael Hewson at CMC Markets.
“Stocks have pared the worst losses after some positive Eurozone industrial production data for November showed a much larger rise than markets had anticipated,” he added.
Eurozone industrial output rebounded sharply in November, offering some reassurance that a modest recovery remains on track after heavy falls in October, official data showed on Tuesday.
European stocks recovered further as the opening bell on Wall Street approached, to end the day in the green.
US stocks pushed solidly higher on Tuesday after taking a deep plunge on Monday, with support coming in part from better-than-expected earnings at JP Morgan Chase and Wells Fargo.
In midday trading, the Dow Jones Industrial Average added 0.43 percent to 16,328.36 points.
The broad-market S&P 500 rose 0.74 percent to 1,832.70 and the tech-rich Nasdaq jumped 1.18 percent at 4,161.87.
On Monday, the indices suffered losses of more than one percent as investors continued to digest the weak jobs report for December released Friday.
But data showing that US retail sales rose in December over America’s crucial holiday shopping season, beat gloomy expectations, and showed the recovery has not stalled.
The Commerce Department said that retail and food services sales totalled $431.9 billion, up 0.2 percent from November.
Consumer spending is the prime driver of the US economy, so there was concern when analysts forecast flat retail sales month-over-month in December.
“US retailers, in general, appeared to have had a holly jolly Christmas last year,” said BMO Capital Markets economist Jennifer Lee.
She noted that excluding auto sales jumped 0.7 percent, the largest monthly increase in 10 months.
“That is three straight months of solid increases, which suggest that Americans spent at their fastest pace in three years,” said Lee, although she noted the gains are not spectacular.
US banks’ earnings season underway
US banking giant JPMorgan Chase reported a 7.2-percent drop in fourth-quarter earnings to $5.3 billion on revenues of $23.16 billion. The results included another charge related to legal settlements.
On the positive side, the results returned JPMorgan to profitability after a loss in the third quarter when a $9.15 billion charge on legal expenses left the company with a rare quarterly loss.
Its shares were down 0.1 percent to $57.64 in midday trading.
Meanwhile, Wells Fargo reported a 10.5-percent rise in earnings as improving credit quality and growth in overall loans offset lower mortgage revenues.
Wells Fargo, known as the nation’s largest mortgage lender, said net income for the fourth quarter came in at $5.4 billion on revenues of $20.7 billion, up from $4.9 billion on revenues of $21.9 billion.
Its shares were flat $45.55.
And General Motors said that it sold 9.71 million cars last year, an increase of 4 percent, beating out rival carmaker Volkswagen but likely only holding onto second place behind world leader Toyota.
GM shares accelerated 1.2 percent to $40.06.
In foreign exchange trading, the euro edged up to $1.3677 from $1.3670 late on Monday in New York.
The European single currency fell to 83.12 British pence from 83.41 pence Monday. The British pound rose to $1.6456 from $1.6367.
Gold prices slipped to $1,251.50 an ounce from $1,257 Monday on the London Bullion Market.
Asian markets mostly suffered a sell-off after heavy losses on Wall Street on Monday fuelled by worse-than-expected US jobs figures.
