(MENAFN- AFP) Stock markets rose in most parts of the world Tuesday, with encouraging economic data in China and Europe combining with steady oil to keep investor mood positive.
Figures pointing to a looming turnaround in China set the tone for optimism on the macro-economic front.
Traders also reacted to news that Germany's trade surplus beat expectations to shrink only slightly in June after exports returned to growth.
These figures, along with strong company results, helped Frankfurt stocks reach their highest level so far this year, clocking up a 5.4 percent increase in a week, although dealers noted that trading volumes were thin.
Elsewhere, retail sales surprisingly recovered in Britain during July as warmer weather cancelled out economic uncertainty triggered by the vote to exit the European Union, according to a survey by the British Retail Consortium and financial group KPMG.
The pound sterling fell, however, amid fears that upcoming data on the post-Brexit vote performance of the British economy may not be so bright.
- 'Gain high ground' -
Frankfurt's Dax index was the day's star performer, rising 2.5 percent, while Paris clocked up a 1.2 percent gain and London 0.6 percent.
"European markets are trying to gain the high ground, encouraged by an empty events calendar in the short term," French brokerage Aurel BGC said in a note to clients.
US stocks also nudged higher, helped by a broadly positive earnings picture from American corporates.
With nearly 90 percent of the S&P 500 having already reported, 64 percent of the index has scored better-than-expected earnings, said S&P Global Market Intelligence.
"Sentiment remains upbeat for global equities mainly because of the (stimulus) actions of central banks, rebounding oil prices and the mostly better-than-expected US corporate earnings results," said Fawad Razaqzada at City Index trading group.
But Gap shares slumped after the company reported a four percent decline in comparable store sales for July and a two percent drop for the second quarter, while Hertz Global Holdings also sank after reporting a $43 million loss in the second quarter.
Earnings from Disney were expected later Tuesday.
- End of slowdown -
In Asia, China's producer prices fell in July at their slowest rate in nearly two years, fuelling hopes that the end of a painful slowdown could be in sight for a key driver of the global economy.
Heavyweight energy stocks rose after OPEC on Monday said it would hold an informal meeting in Algeria next month -- a hint it could take action to stabilise crude production.
Last Friday's strong US jobs data also continued to work their charm on markets, pointing to a buzzing American economy and a chance for the US central bank, the Fed, to finally implement a clear policy of tightening credit.
"Global markets have pushed higher over the past week on the idea that the US economy may soon be strong enough for the Fed to begin hiking rates once more," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.
- Key figures at around 1545 GMT -
London - FTSE 100: UP 0.6 percent at 6,851.30 points (close)
Frankfurt - DAX 30: UP 2.5 percent at 10,692.90 (close)
Paris - CAC 40: UP 1.2 percent at 4,468.07 (close)
EURO STOXX 50: UP 1.5 percent at 3,028.54
New York - DOW: UP 0.2 percent at 18,571.30
Tokyo - Nikkei 225: UP 0.7 percent at 16,764.9 (close)
Shanghai - Composite: UP 0.7 percent at 3,025.6 (close)
Hong Kong - Hang Seng: DOWN 0.1 percent at 22,463.9 (close)
Euro/dollar: UP at $1.1111 from $1.1084 Monday
Pound/dollar: DOWN at $1.3005 from $1.3040
Dollar/yen: DOWN at 101.92 yen from 102.45 yen
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