LONDON (TheDeal) -- European stocks rose sharply on Tuesday, inspired by a recovery in Chinese equities, further propelled by an upward revision to second-quarter GDP data for the eurozone.
The revision showed that the economy of both the eurozone and the wider European Union expanded 0.4% in the second quarter, according to figures from the European Commission's statistics agency. An earlier reading suggested that eurozone growth had slowed on a quarter-on-quarter pace of 0.3% from 0.5% in the first quarter.
That data followed news of much stronger than expected monthly growth in German imports and exports in July. Exports rose by 2.4%, more than treble the 0.7% growth expected, while imports leaped by 2.2%, compared with forecasts for 0.5% month-on-month growth.
In London, the benchmark FTSE 100 was gaining 1.5% to 6,166.58 while in Frankfurt the market's DAX index climbed 2.1% to 10,324.12. In Paris, the local bourse's benchmark CAC 40 gained 1.75% to reach 4,629.47.
In London, United Utilities (UUGRY) led the FTSE 100 gainers, which were otherwise dominated by financial services companies, after takeover speculation inspired by a note from Sanford C. Bernstein & Co. analysts. The stock was up by more than 3% by mid-morning.
But hotels, pub-restaurants and coffee shops operator Whitbread (WTBCY) led the decliners on the benchmark index, falling close to 4%, after a disappointing second-quarter sales bulletin.
Lloyd's of London insurer Amlin surged about 33% after agreeing to a £3.47 billion ($5.3 billion) takeover offer from Japan's MS&AD Insurance Group Holdings Inc., or Mitsui Sumitomo Insurance Co., that represents a 36% premium to Monday's closing price.
Real estate developer Berkeley Group Holdings was up more than 2% after releasing a quarterly bulletin in which it reiterated earlier guidance that it will deliver a total of £2 billion in earnings over the next three fiscal years.
Mid-cap household and cleaning products maker McBride was up close to 2% in London as it said that it had swung back into the black in its full-year and laid out new targets following the conclusion of a strategic review.
Suez Environnement (SZEVY) rose well over 4% after Bryan Garnier & Co. analysts moved their recommendation in the same direction.
Alstom also rose ahead of an expected decision by European Commission regulators to grant conditional clearance for General Electric's (GE) - Get General Electric Company (GE) Report purchase of most of Alstom's power-equipment manufacturing operations.
Asian stocks were mixed on Tuesday.
In Tokyo, the Nikkei closed down 2.53% at 17,427.08 and the Topix dropped 2.0% to 1,416.71.
Amlin buyer MS&AD Insurance Group Holdings Inc. closed down 2.6%.
But in Hong Kong the Hang Seng powered ahead by 3.65% to close at 21,333.91. On mainland China, the Shanghai composite index closed up 2.92% at 3,170.4.
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