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European stocks boosted by Chinese data; DAX rallies 1.7%

Forex Pros - European stock markets were sharply higher on Tuesday, as a string of Chinese economic data helped lift market sentiment, while U.S. futures indexes pointed to a higher open on Wall Street.

During European morning trade, the EURO STOXX 50 surged 1.5%, France's CAC 40 jumped 1.15%, while Germany's DAX 30 rallied 1.7%.

Earlier in the day, Chinese government data showed that consumer price inflation rose at an annualized rate of 5.5% in May, broadly in line with expectations.

Separate reports showed that producer price inflation rose slightly more-than-expected, while retail sales and industrial production data all showed robust growth, easing worries over a slowdown in the world's second largest economy.

Meanwhile, shares in the financial sector were broadly higher ahead of a meeting of euro zone finance ministers in Brussels later in the day.

Shares in Deutsche Bank rallied 2.2%, BNP Paribas saw shares jump 1.85%, while Spanish banking giant Banco Santander saw shares gain 2.1%.

Finnish mobile phone company Nokia saw shares rise 2.3% after the company said it has reached a deal with Apple that will end their patent dispute.

In deal news, shares in car-rental service Avis Europe soared 57.8% after it agreed to be acquired by its U.S. counterpart Avis Budget Group in a deal valued at nearly USD1 billion.

In London, the commodity-heavy FTSE 100 climbed 0.6% as shares in raw material producers led gains, as concerns over a slowdown in demand from China eased.

The world's largest mining group BHP Billiton saw shares jump 1.4%, rival Rio Tinto gained 1.2%, while copper producer Kazakhmys surged 1.8%.

Meanwhile, the world's largest commodities trader Glencore International said profit jumped to more than USD1 billion in its first set of quarterly results since going public last month.

However, the stock slumped 1.8% after the company denied that it was in talks over an acquisition of miner Eurasian Natural Resources. Eurasian shares dropped 2.45% on the news.

Earlier Tuesday, official data showed that consumer price inflation in the U.K. was unchanged at 4.5% in May.

The outlook for U.S. equity markets was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.75%, S&P 500 futures indicated an increase of 0.9%, while the Nasdaq 100 futures climbed 0.7%.

Later in the day, the U.S. was to publish official data on retail sales and producer price inflation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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