- US durable goods orders surge
- US consumer confidence rises
- Market weighs dovish Draghi
- Ukraine and Russian leaders meet
FTSE 100: 0.70%
CAC 40: 1.18%
FTSE MIB: 1.33%
IBEX 35: 1.28%
Stoxx 600: 0.73%
European stocks rallied after better-than-expected US reports on durable goods and consumer confidence.
US durable goods surged 22.6% in July, following a 2.7% gain in June, driven by aircraft orders. Analysts had expected an 8% increase.
The index for US consumer confidence rose to 92.4 in August from a revised 90.3 in July, surprising analysts who had expected a reading of 89.
However, expectations of the economic outlook fell slightly to 90.9 from 91.9 in July.
"While the expectations index has been volatile in recent years, the present situation index has been steadily trending higher over that time, mirroring improvements in housing and labour markets," Barclays Research said.
"We expect this pattern to continue over the medium term and look for consumer confidence to remain on a broadly upward trend as a result."
Earlier in Tuesday's session, a lack of data saw investors focus on dovish remarks from European Central Bank President Mario Draghi.
At the Jackson Hole symposium of central banks on Friday Draghi spoke about the possibility of full-on quantitative easing to fight off deflation which sent stocks higher on Monday.
European banks, including BNP Paribas and Societe Generale, rallied on Tuesday as the market continued to digest Draghi's speech.
Meanwhile, Ukrainian President Petro Poroshenko and his Russian counterpart Vladimir Putin met on Tuesday at a conference in the Belarussian capital of Minsk. The meeting comes a day after Poroshenko dissolved Ukraine's parliament and called for early elections in October.
Ten Russian soldiers were captured in the Donetsk region of eastern Ukraine with documents and weapons on them, according to Ukraine's Security Service on Tuesday. A Russian Defense Ministry official said the soldiers had been patrolling the border and "most likely crossed by accident", Russia's state-run RIA Novosti news agency reported.
WPP rallied after the ad agency reported a rise in first half revenue that beat market forecasts.
Voelsalpine gained as UBS upgraded the steelmaker's shares
to 'buy' from 'sell'.
Telecity retreated after announcing that Michael Tobin will leave after 10 years as chief executive.
Antofagasta dropped after the commodity producer posted first half revenue that missed analysts' expectations.
Vestas Wind Systems declined as Bank of America downgraded the wind turbine manufacturer to 'underperform' from 'neutral', saying the US government may take longer to reintroduce tax incentives for wind turbines than expected.
The euro rose 0.06% to $1.3200.
Brent crude futures climbed 0.14% to $102.80 per barrel, according to the ICE.