European shares pushed higher in mid-morning trade on Tuesday as new data for Germany beat expectations and buoyed investor sentiment.
ZEW beats forecasts
The pan-European Euro Stoxx 600 index rose, with investors cheering new economic data from Germany. The keenly watched German ZEW indicator of economic sentiment came in at 11.5 points for November, versus -3.6 in October.
Tuesday’s data was viewed as promising, given recent signs the German economy was slowing. The German DAX traded over 1 percent higher after the news.
“Stabilizing surveys in Germany are good news,” Evelyn Herrmann, the European economist at BNP Paribas said in a note after the news.
“We think that the stabilization of the DAX compared to mid-October levels combined with the confirmation that German growth did not fall off a cliff in (the third quarter) contributed to the improvement in sentiment.”
U.K. inflation for October was also out on Tuesday morning. Consumer prices grew by 1.3 percent year-on-year, up from September’s five-year low of 1.2 percent, according to official data.
In Asia, Japan’s Nikkei 225 index recouped more than half of Monday’s steep losses buoyed by expectations that Prime Minister Shinzo Abe will announce a delay in a planned sales tax hike following Monday’s grim third quarter GDP data. Asian markets on the whole were mixed Tuesday afternoon, with Sydney and mainland indices underperforming on the back of a steeper-than-expected fall in China’s new home prices.