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European stocks closed higher Tuesday, with bank stocks gaining ground as investors assessed upbeat developments from Germany and Greece.
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.55% tacked on 0.4% to finish at 380.77, rebounding after the benchmark on Monday closed lower by 0.2%.
In Frankfurt, the DAX 30 /zigman2/quotes/210597999/delayed DX:DAX +0.39% was higher by 0.5% at 12,264.31, holding to gains after the closely watched Ifo Institute described German companies as “euphoric”. The widely watched Ifo index of business sentiment in Europe’s largest economy surged to a record high of 116.0 in July.
“The current acceleration in the German economy is not only the result of strong private and public consumption, but also of an unexpected industrial revival and stronger investment,” said Carsten Brzeski, chief economist at ING, in a note.
“The recent strengthening of the euro should not be a risk, as the German export sector has frequently proven its ability in the past to stomach stronger exchange rates,” he added.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.0172% climbed to an intraday high of $1.1712, up from $1.1645 late Monday in New York. It recently traded at $1.1654.
Stock movers: Tuesday’s top gainers included Banco de Sabadell SA /zigman2/quotes/206753237/delayed ES:SAB -3.94% , as shares of the Spanish lender rose 3.7%.Sabadell is part of a joint venture with Zurich Insurance Group /zigman2/quotes/208758696/delayed CH:ZURN -0.27% that signed a reinsurance agreement with Swiss Re /zigman2/quotes/203711779/delayed CH:SREN +0.03% for its individual life portfolio for 683.7 million euros ($797.1 million).
Sabadell’s share-price rise helped lift the Stoxx Europe 600 Bank Index /zigman2/quotes/210599339/delayed XX:SX7P -0.44% up 1.6%.
TechnipFMC PLC /zigman2/quotes/206450192/delayed FR:FTI -2.80% fell 1.8% after the oil-field services company said it would restate some prior results because of material errors.
Off the Stoxx Europe 600, shares of luxury shoe maker Jimmy Choo jumped 17% after it signed a $1.2 billion deal to be acquired by U.S. fashion house Michael Kors Holdings Ltd. .
Greek bond sale: Meanwhile, Greece is back in the international bond markets following a three-year hiatus, with a five-year bond sale starting Tuesday. Greece’s Athex Composite /zigman2/quotes/210597948/delayed GR:GD -0.37% was down 0.7% at 843.05 on Tuesday, but has jumped 31% this year.
Economic docket: In the U.S., the Federal Reserve’s two-day policy meeting is due to kick off Tuesday, with the resulting policy announcement due Wednesday. European investors closely watch U.S. central bank moves, as they help drive sentiment in Europe.
National indexes: The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.20% drove up 0.8% to end at 7,434.82, and France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.62% rose 0.7% to finish at 5,161.08.