European Markets Climbed After Strong Retail Performance

(RTTNews) - The European markets finished solidly in the green on Tuesday, extending their gains from the previous session. The markets received a boost from a strong performance by retailers, as well as continued hopes for further stimulus measures by the European Central Bank.

Investor optimism for the U.S. earnings reporting season also positively impacted the markets. Aluminum company Alcoa unofficially kicked off the season yesterday with a better than expected report. The U.S. stock markets responded positively to the news, as well as to broker upgrades for some large U.S. technology companies.

Investors will be watching for a ruling on the legality of ECB bond purchases tomorrow. The ruling may prove very important ahead of the upcoming ECB monetary policy meeting on January 22.

Germany's wholesale prices decline accelerated for the second straight month in December and prices fell the most in five years during the whole year 2014, preliminary figures from Destatis showed Tuesday. The wholesale price index fell 2.3 percent year-on-year in December, faster than November's 1.1 percent decline. In October, prices dropped 0.7 percent.

U.K. inflation slowed more-than-expected to the lowest since May 2000 on lower fuel prices, data from the Office for National Statistics showed Tuesday. Inflation halved to 0.5 percent in December from 1 percent in November. It was expected to ease to 0.7 percent.

Another report from ONS today showed that output prices declined at a faster pace of 0.8 percent annually in December after falling 0.6 percent in November. It was faster than a 0.4 percent drop forecast by economists.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.55 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.37 percent.

The DAX of Germany climbed by 1.63 percent and the CAC 40 of France gained 1.47 percent. The FTSE 100 of the U.K. advanced by 0.63 percent and the SMI of Switzerland rose by 1.45 percent.

In Frankfurt, Metro increased by 4.48 percent, after its first quarter sales report.

Deutsche Bank and Commerzbank gained 3.03 percent and 5.14 percent, respectively. JPMorgan raised Commerzbank to "Overweight" from "Neutral."

Credit Suisse reduced its rating on ThyssenKrupp to "Neutral" from "Outperform." The stock dropped by 2.10 percent.

In Paris, Schneider Electric rose by 3.19 percent. Merrill Lynch raised the stock to "Buy" from "Neutral."

Gemalto declined by 2.68 percent, The digital security provider said it would deliver its Sealys eID card and Coesys Issuance solution to the Ministry of Interior of Uruguay for the country's eID (Documento de Identidad) program.

Veolia Environnement climbed by 4.14 percent, and Carrefour advanced by 3.85 percent.

Credit Agricole rose by 3.65 percent and BNP Paribas added 2.32 percent. Societe Generale also gained 1.26 percent.

In London, William Morrison Supermarkets advanced by 4.47 percent. The supermarket chain said its chief executive was leaving, after Christmas sales turned out to be unimpressive.

Tesco and J Sainsbury rose by 3.64 percent and 3.62 percent, respectively.

Royal Bank of Scotland advanced by 1.41 percent and Barclays added 0.69 percent.

Sika increased by 4.57 percent in Zurich. The specialty chemicals firm said its consolidated net sales for the fourth quarter rose 5.1 percent, despite a very strong prior-year period growth of 17.8 percent. Sika expects an above-average increase in net profit for the full year. Royal Philips dropped by 1.18 percent in Amsterdam. The company said that, due to the slower than anticipated ramp up of production and shipment in Cleveland, the impact on its full year EBITA will be approximately 225 million euros instead of the previously estimated 180 million euros.