European Markets Close Higher

(RTTNews) - European markets ended higher on Tuesday, extending recent gains, thanks to positive developments on U.S. stimulus and post-Brext trade deal fronts.

The signing of a massive $2.3 trillion fiscal relief package signed by U.S. President Donald Trump, and the agreement between the European Union and Britain over a post-Brexit trade deal continued to keep investor sentiment upbeat.

Optimism about rollout of more vaccines to curb the spread of coronavirus infection contributed as well to the positive trend in European markets.

The European Union has undertaken a massive coronavirus vaccination drive, even though there are concerns over the spread of new coronavirus variant. As per reports, the U.K. is expected to approve Oxford-AstraZeneca Covid vaccine this week.

Traders were also looking ahead to the U.S. Senate vote on a proposal by Trump who demands to increase the amount of coronavirus relief checks from $600 to $2,000. The House of Representatives voted in favor of the proposal on Monday.

Several markets in Europe hit multi-month highs. Among the major indices, the pan European Stoxx 600 climbed 0.76%. The U.K.'s FTSE 100 gained 1.55%. France's CAC 40 ended higher by 0.42% and Switzerland's SMI gained 0.74%, while Germany's DAX slid 0.21%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Russia, Spain, Sweden and Turkey closed higher.

Greece and Ukraine closed weak, while Portugal ended flat.

In the UK market, Halma, Diageo, Smith & Nephew, Spirax-Sarco Engineering, Kingfisher, Polymetal International, Smurfit Kappa Group, Johnson Matthey, Unilever and Bunzl gained 3 to 5%.

AstraZeneca Pharma moved up 3.3% on reports the U.K. is expected to approve Oxford-AstraZeneca Covid vaccine this week.

Admiral Group Plc shares gained about 3.4% after the company reached an agreement to sell Penguin Portals Group to to RVU, the comparison division of ZPG Comparison Services Holdings UK Limited.

Vectura confirmed that GlaxoSmithKline has not sought to petition the US Court of Appeals for a re-hearing in their ongoing Ellipta litigation. GlaxoSmithKline shares rose sharply and Ventura Group also ended on a strong note.

In France, Air France-KLM climbed nearly 5%. WorldLine, LVMH, Carrefour, Hermes International, Airbus Group, Pernod Ricard and Teleperformance also ended sharply higher, while Engie, Technip and STMicroElectronics ended notably lower.

In the German market, Lufthansa climbed more than 5.5%. MTU Aero Engines and Deutsche Wohnen gained 1.7% and 1.2%, respectively.

SAP SE shares gained in strength after the company said its unit Qualtrics International Inc. has filed with the U.S. Securities and Exchange Commission to raise up to $100 million in an initial public offering of common shares.

On the other hand, Deutsche Bank, Wirecard, Siemens and Infineon Technologies ended notably lower.

In economic releases, Sweden's imports for the month of November was down 2% from last year, and exports were down 3%.

As per survey results from IHS Markit, Austria's manufacturing sector continued to recover from the Covid-19 pandemic. The headline UniCredit Bank Austria Manufacturing Purchasing Managers' Index rose to 53.5 in December from 51.7 in the previous month.

Further, Turkey's economic confidence decreased in December, figures from the Turkish Statistical Institute showed.

Portugal's November retail sales were down 5.1% on year, compared to 0.4% drop in October.