European Markets Climbed On Stimulus Hopes

(RTTNews) - The European markets ended Tuesday's session in the green, despite some weak global economic data. Employment data from the Eurozone was viewed positively, but manufacturing data was disappointing. Chinese manufacturing data also came in weaker than expected.

The weak Chinese data lead to speculation that China will need to expand its stimulus measures. In addition, the European Central Bank will hold its meeting next week. Investors are expecting the ECB to announce further quantitative easing measures at the meeting.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 1.72 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.31 percent.

The DAX of Germany climbed 2.34 percent and the CAC 40 of France rose 1.22 percent. The FTSE 100 of the U.K. gained 0.92 percent and the SMI of Switzerland finished higher by 1.51 percent.

In Frankfurt, Automakers climbed on the opening day of the Geneva motor show. BMW increased 4.26 percent, Daimler added 2.52 percent and Volkswagen rose 4.69 percent.

RWE advanced 6.07 percent and peer E.ON gained 4.17 percent.

Klöckner & Co. jumped 8.02 percent even as the metals trader posted fiscal 2015 net loss of 349 million euros, hit by goodwill impairments in North America activities.

In Paris, Peugeot rose 4.29 percent and Renault added 1.76 percent. Car parts maker Valeo also advanced 2.07 percent.

In London, Barclays slumped 8.11 percent after announcing further restructuring and halving its dividend in a bid to boost its capital buffer.

London Stock Exchange Group soared 7.17 percent. Intercontinental Exchange confirmed that it is considering making an offer for LSE, which is in talks over a potential merger with Deutsche Boerse.

Glencore dropped 2.06 percent. The mining giant reported a 70 percent fall in annual adjusted net income after being hit by weak commodity prices.

Fresnillo tumbled 6.20 percent. The company reported profit before income tax of $212.4 million for the full year ended 31 December 2015 compared to $251.1 million, last year.

Ashtead Group sank 8.82 percent. The company's third quarter earnings per share were 17.2 pence, 18 percent higher than 14.1 pence a year ago.

Eurozone manufacturing growth eased to a one-year low in February, final data from Markit showed Tuesday. The final manufacturing Purchasing Managers' Index fell to 51.2 in February, a 12-month low, from 52.3 in January. It was slightly above the flash estimate of 51.

The euro area unemployment rate fell to the lowest level in more than four years in January despite sluggish economic growth and weak confidence. The jobless rate came in at 10.3 percent in January, down from 10.4 percent in December, data from Eurostat showed Tuesday. This was the lowest since August 2011. It was forecast to remain at 10.4 percent.

Germany's unemployment declined for the fifth consecutive month in February, the Federal Labor Agency reportedly said Tuesday. The number of people out of work decreased 10,000 from January as expected by economists.

Germany's unemployment rate declined marginally in January, provisional data from Destatis showed Tuesday. The jobless rate fell slightly to adjusted 4.3 percent in January from 4.4 percent in December. In the same period last year, the rate was 4.8 percent.

The U.K. manufacturing sector expanded at the slowest pace since early 2013 in February, data from Markit showed Tuesday. The Chartered Institute of Procurement & Supply/Markit Purchasing Managers' Index fell more-than-expected to 50.8 in February from 52.9 in January. This was the lowest reading since April 2013. It was forecast to drop to 52.3 in February.

Manufacturing activity in China continued to contract in February, as output declined at the steepest pace since last September on a sharp decrease in new work.

The Caixin manufacturing Purchasing Managers' Index fell unexpectedly to 48 in February from 48.4 in January, survey results from Markit showed Tuesday. This was the lowest reading in five months. Economists had forecast the index to have remained unchanged at 48.4.

The official manufacturing PMI slid to 49 in February from 49.4 in January. Likewise, the non-manufacturing PMI fell to 52.7 from 53.5 in the prior month. Although the sector logged an expansion, the pace was the weakest since late 2008.

While the Institute for Supply Management released a report on Tuesday showing a much bigger than expected increase by its index of manufacturing activity in the month of February, the index still pointed to the fifth straight month of contraction.

The ISM said its purchasing managers index rose to 49.5 in February from 48.2 in January, but a reading below 50 continues to indicate a contraction in manufacturing activity. Economists had expected the index to inch up to 48.5.

Construction spending in the U.S. increased by much more than anticipated in the month of January, according to a report released by the Commerce Department on Tuesday.

The report construction spending surged up by 1.5 percent to an annual rate of $1.141 trillion in January from the revised December estimate of $1.124 trillion. Spending had been expected to rise by 0.5 percent.