Europe close: Stocks boosted by basic resources, German Ifo
European stocks ended higher on Tuesday, with basic resources pacing the advance as investors cheered an upbeat reading on German business confidence.
The benchmark Stoxx Europe 600 index ended up 0.4%, while Germany’s Dax rose 0.5% and France’s CAC 40 closed up 0.5%. Basic resources were the standout gainers as copper prices rallied, with the Stoxx 600 sub-index for the sector up 2.6%.
Meanwhile, the euro was trading up 0.1% against the dollar at 1.1656, having hit risen to 1.1665 earlier after a survey showed German business confidence unexpectedly improved in July.
The Ifo's business climate index rose to 116 from 115.2 the month before, beating expectations for a reading of 114.9 and hitting a new record high for the third month in a row.
The current assessment index printed at 125.4 from 124.2 in June, surpassing expectations for a drop to 123.8. Meanwhile, the expectations index advanced to 107.3 in July from 106.8, coming in ahead of forecasts of 106.5.
IG analyst Joshua Mahony said: "Today’s German IFO business climate figure hit a record high of 116.0, helping prove the continued confidence evident within the eurozone despite the threat of a Brexit. With the German elections due in September, today’s reading highlights the remarkable confidence businesses feel about the direction of the country despite this uncertainty.
"With the Greeks issuing their first new bond sale since 2014, it is clear that the eurozone is moving in the right direction, and given that Germany is the chief benefactor of a strong eurozone, it is no surprise that we are seeing business confidence at record highs."
Greece made its ways back into the international bond markets on Tuesday after a three-year hiatus and was reported to have received €7bn in offers for a five-year bond.
On the corporate front, London-listed Segro and Informa both racked up healthy gains after upbeat first-half updates.
Elsewhere, Randstad advanced after posting a 9% jump in second-quarter core profit, while Daimler ticked up after announcing that it will invest in a Chinese self-driving start-up.
Telecom Italia nudged higher after announcing the resignation of its chief executive Flavio Cattaneo and iPhone supplier AMS was stronger after it lifted its mid-term revenue target.
In deal news, luxury accessories brand Jimmy Choo surged after agreeing to be bought by Michael Kors for £896m.
It wasn't all good news, however, with Croda International, Lindt & Spruengli and UPM all in the red after updates, while Logitech reversed earlier gains to end sharply lower despite lifting its outlook.