European Stocks Close Broadly Higher

(RTTNews) - European stocks closed broadly higher on Tuesday with those from the mining sector posting impressive gains as metal prices surged on optimism about increased demand from China.

The mood remained largely cautious with investors looking ahead to the policy meetings of the U.S. Federal Reserve, the European Central Bank and the Bank of Japan.

The Fed, which commenced its two-day monetary policy meeting today, is widely expected to raise rate by 25 basis points tomorrow. The focus is on the bank's accompanying statement for hints on future rate hikes.

The European Central Bank's policy announcement is due on Thursday, while the BoJ is scheduled to announce its policy on Friday.

Reports about Chinese authorities pledging more support measures to boost growth in the world's second-largest economy aided sentiment.

The pan European Stoxx 600 gained 0.48%. The U.K.'s FTSE 100 and Germany's DAX ended higher by 0.17% and 0.13%, respectively. France's CAC 40 ended 0.16% down, and Switzerland's SMI climbed 0.48%.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Iceland, Netherlands, Norway, Poland, Russia and Sweden closed higher.

Czech Republic, Denmark, Ireland, Spain and Turkiye ended weak, while Portugal settled flat.

In the UK market, Unilever climbed 4.8% after Q2 sales beat estimates. Antofagasta rallied more than 6.5%. Anglo American Plc, Croda International, Rio Tinto, Prudential and Admiral Group gained 3 to 5%.

Smith (DS), Mondi, Smurfit Kappa Group, Entain, Unite Group, Persimmon, Kingfisher and WPP also ended sharply higher.

Compass Group tumbled more than 5%. Melrose Industries, IAG, Rolls-Royce Holdings, Associated British Foods, Flutter Entertainment, Auto Trader Group, Next and Ocado Group lost 2 to 2.7%.

In the German market, Adidas climbed nearly 4%. Siemens Healthineers gained about 3% and Beiersdorf surged 2.3%.

Siemens Energy, Zalando, Symrise, Infienon and Deutsche Bank ended higher by 1.3 to 2%.

MTU Aero Engines plunged 7%. Fresenius Medical Care ended 2.8% down, while Commerzbank lost 1.25%.

In Paris, STMicroElectronics and ArcelorMittal both gained nearly 2.5%. Publicis Groupe, Safran and Teleperformance also ended notably higher.

Dassault Systemes ended lower by about 5% after posting muted revenue growth in the second quarter. Airbus Group, Unibail Rodamco, Alstom, Renault and Orange lost 1 to 2.5%.

In economic news, German business confidence deteriorated for the third straight month in July, a monthly survey conducted by the ifo institute showed on Tuesday. The business climate index fell to 87.3 in July from 88.6 in the previous month. The expected score was 88.0.

UK manufacturers' confidence improved for the first time in two years in three months ended July and domestic selling price pressures softened notably, the Industrial Trends Survey results from the Confederation of British Industry showed.

The business sentiment index rose to +6% in three months to July from -2% in the preceding period. This was the first positive score since July 2021. Export optimism also rose for the first time since October 2021.

The Bank Lending Survey from the European Central Bank said eurozone lenders tightened their credit standards, while demand for loans from both firms and households declined in the second quarter.

The survey provided early indications about the weakening in lending dynamics seen since last autumn. Banks citied higher risk perceptions, lower risk tolerance and higher cost of funds contributed to the tightening of credit standards.