Europe open: Shares up as German factory orders rise, BP ups buybacks

European shares rallied at the open on Tuesday as German factory orders unexpectedly rose in December, while oil giant BP surged after it announced a $1.75bn share buyback.

The pan-European Stoxx 600 index was up 0.50% at 486 in early deals.

German factory orders rose 8.9% on the month on a seasonally and calendar adjusted basis following a flat reading in November and versus expectations for them to be unchanged.

On the year, meanwhile, factory orders were 2.7% higher in December following a 4.7% decline the month before.

In 2023 as a whole, incoming orders fell by 5.9% on a calendar-adjusted basis compared to the previous year, according to official data. However, other vehicle construction recorded growth - this includes, among other things, the construction of aircraft, ships and trains.

In equity news, BP rose to the top of the Stoxx 600, up 5%, after announcing plans increase shareholder returns even after a full-year profits halved on the back of weaker oil prices.

Swiss bank UBS fell despite beating fourth-quarter earnings expectations and unveiling a return of share buybacks worth up to $1bn in the second half of the year.

Reporting by Frank Prenesti for Sharecast.com