Europe open: Stocks higher as investors weigh mixed PMIs

European stocks were higher on Tuesday as traders digested mixed eurozone services and manufacturing data and awaited the UK Supreme Court ruling on parliament’s role in Brexit.

At 0853 GMT, the DAX rose 0.08% to 11,55.26 points, the CAC 40 edged up 0.01% to 4,821.93 points, the FTSE MIB jumped 077% to 149.22 points and the IBEX 35 increased 0.25% to 9,328.80 points.

At the same time, oil prices climbed with Brent crude up 0.52% to $55.54 per barrel and West Texas Intermediate up 0.58% to $53.06 per barrel.

Markit’s eurozone manufacturing purchasing managers’ index rose to 55.1 in January from 54.9 in December, exceeding analysts’ estimates for a reading of 54.8 and remaining above the 50 level that separates an expansion in sector activity from a contraction.

Eurozone services PMI, however, fell to 53.6 in January from 53.7 a month earlier, below projections for a level of 53.9.

Markit’s German services PMI declined to 53.2 in January from 54.3 the previous month, missing forecasts for a reading of 54. Germany’s manufacturing PMI, on the other hand, rose to 56.4 in January from 55.6, beating expectations of 55.4.

Investors are also looking ahead to the Supreme Court decision on whether members of parliament must receive a vote on invoking Article 50, which begins the formal Brexit process.

“The Supreme Court ruling could heavily influence foreign exchange markets, which would likely have an influence on exporters names and major equity indices like the FTSE and DAX,” said analysts Mike van Dulken and Henry Croft at Accendo Markets.

“If the High Court’s ruling that the PM must seek parliamentary approval is upheld, GBP could rally on the hope that the whole Brexit process becomes more complicated for PM May, perhaps even delayed. A favourable ruling would likely see GBP fall on the premise that the Prime Minister can proceed unchallenged.”

In company news, Easyjet shares plummeted after reporting a drop in first quarter unit revenue as the effects of a weak sterling and fuel prices were worse than expected.

BT was under the cosh as it cut its profit guidance for the next two years after an investigation discovered accounting errors at the telecoms giant's Italian business led to increased write-downs, which comes on top of a deterioration in outlook for its UK public sector arm.

Assicurazioni Generali SpA gained after buying voting rights worth 3.01% of lender Intesa Sanpaolo SpA's share capital, in to defend itself against the bank purchasing large stake in itself.