(MENAFN- AFP) European stock markets rose Tuesday on steadier oil prices which also lifted Wall Street at the opening, with many traders away for an extended festive break.
The benchmark indices in Paris and Frankfurt showed healthy gains, after losses on Monday following the Christmas holiday.
London returned to action on Tuesday with more modest gains but the homebuilding sector jumped on demand hopes in the wake of flooding in northern England.
US stocks opened higher, with dealers also citing the upward move in oil prices as a factor.
"Thin trading volumes appear to be enhancing whatever nascent positive sentiment there is in the eurozone, allowing the DAX and CAC to stretch out their legs," said analyst Connor Campbell at trading firm Spreadex.
"The FTSE has not been so lucky; despite a strong set of housing stocks due to the tragic flooding in the north of England, and a stable oil price, the UK index is struggling to match its eurozone peers, hampered by a grumpy mining sector."
In London, homebuilders Persimmon and Taylor Wimpey were among the top gainers.
"With the cost of repairing and rebuilding the countless homes up north that have been damaged by the flooding... investors appear to be confident that the housing sector is set to benefit," added Campbell.
Crude oil prices firmed but held near recent multi-year lows, dogged by stubborn oversupply and tepid economic data.
Asian equities broadly rose in see-saw trading despite fears about the state of China's economy, a key driver of global growth. Thin trading volumes also underpinned gains as markets wind down for the final week of the year.
"Equity markets (in Europe) are in the green, tracking an Asian recovery of sorts, amid continued assurances from Beijing that it will continue to monitor the economy and administer treatment where required," said research analyst Augustin Eden at trading firm Accendo Markets.
Shanghai finished up 0.85 percent and Shenzhen added 0.95 percent. Hong Kong's Hang Seng index ended 0.36 percent higher.
In Tokyo, the Nikkei 225 added 0.58 percent on bargain-hunting. Seoul tacked on 0.11 percent, while Taiwan closed 0.77 percent lower. Singapore dipped 0.45 percent.
Earlier in the day, sentiment drooped in the wake of disappointing industrial profit data that pointed to weakness in China's economy.
The looming end to a six-month Chinese share sale ban aggravated worries about a sell-off on mainland bourses.
Dealers were also spooked by reports that Saudi Arabia would cut fuel and utility subsidies in response to a record budget deficit to cope with plunging oil prices.
- Key figures around 1500 GMT -
London - FTSE 100: UP 0.6 percent at 6,289.07 points
Paris - CAC 40: UP 1.6 percent at 4,693.70 points
Frankfurt - DAX 30: UP 1.7 percent at 10,840.97
EURO STOXX 50: UP 1.6 percent at 3,307.12
New York - Dow: UP 1.0 percent at 17,696.53
Tokyo - Nikkei 225: UP 0.58 percent at 18,982.23 (close)
Euro/dollar: DOWN at $1.0928 from $1.0970 late Monday
Dollar/yen: UP to 120.48 yen from 120.38 yen
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