By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Europe’s benchmark stock index nudged toward a fourth straight day of gains on Tuesday, after German business confidence jumped to a five-month high in August and U.K. data showed demand for homes climbed to a four-year high.
The Stoxx Europe 600 index XX:SXXP +0.30% climbed 0.4% to 307.26, on track for the highest closing level since late May.
Posting the biggest gain in the index, shares of GAM Holding AG CH:GAM +11.04% jumped 11% after the investment manager reported a 58% rise in underlying net profit in the first half of the year.
Shares of E.ON SE DE:EOAN +2.96% added 2.9% after the electric utility firm reported a 6% rise in first-half net profit. Peer firm RWE AG DE:RWE +4.47% added 3.9%.
Shares of K+S AG DE:SDF -0.91% lost 1.1% after the potash maker posted second-quarter revenue below market expectations.
More broadly, investors cheered data from Germany, where the ZEW economic sentiment indicator — a gauge of investor confidence — jumped 5.7 points in August to stand at 42 points, the highest level since March. Analysts expected a reading of 39.1, according to FactSet.
The Mannheim-based Center for European Economic Research, or ZEW, said the “first signs of an end to the recession in important euro-zone countries may have contributed to the indicator’s rise.”
“Furthermore, the economic optimism is supported by the robust domestic demand in Germany,” it said.
The DAX 30 index DX:DAX +0.64% traded 0.7% higher at 8,414.14.
France’s CAC 40 index FR:PX1 +0.35% climbed 0.3% to 4,083.86.
Economic data were also in the spotlight in the U.K. The Royal Institute of Chartered Surveyors said its house prices balance rose to +36 in July from +21 the previous month, and was the highest since November 2006, when it reached +42. The reading marked the fastest pace of price increases in more than six years with demand for homes at a four-year peak.
The FTSE 100 index UK:UKX +0.31% added 0.4% to 6,602.85.
Fresnillo PLC UK:FRES +4.99% rose 5.2% in London after UBS initiated coverage of the miner with a buy rating, saying it is “well positioned to outperform in an uncertain price environment.”
Among notable movers in the index, shares of Resolution Ltd. UK:RSL +0.86% gained 1.1% after the insurance firm posted a 17% rise in operating earnings per share in the first half.
In the U.S., stock futures pointed to a higher open on Wall Street. Data showed total retail sales rose 0.2% in July, falling short of the 0.3% expected by economists surveyed by MarketWatch. Excluding the 1.0% drop in motor vehicle sales, however, retail sales rose 0.5%, ahead of expectations of 0.4%.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
