European Stocks Inch Upward on German Manufacturing Strength

European stock indices edged higher on Tuesday after a volatile day in Asia, as gauges showed private-sector strength in Germany and the eurozone offset weak Chinese data.

Author:: Laura Board
Publish date:: Mar 24, 2015 6:46 AM EDT

LONDON (TheDeal) -- European stock indices edged higher on Tuesday after a volatile day in Asia as gauges showed private-sector strength in Germany and the eurozone offset weak Chinese data.

In Germany, Markit Economics' composite Purchasing Managers' index , which includes both manufacturing and the service sector, rose to an eight-month high of 55.3, while the eurozone index at 54.1 was near a four-year high. Both sets of data beat forecasts.

In the U.K., the inflation rate fell to zero in February for the first time on record, slowing from a rate of 0.3% in January and compared with consensus expectations for annual price growth of 0.1%. The data will support a growing belief among some market participants that a rate cut has become as likely as a rate rise.

In London, the FTSE 100 edged up 0.15% to 7,048.86. In Frankfurt, the DAX rose 0.20% to 11,919.20, with lenders Commerzbank (CRZBY) and Deutsche Bank (DB) - Get Report leading the index higher. In Paris, the CAC 40 rose 0.25% to 5,067.05.

London broker and investment bank Panmure Gordon (PMRGF) pared initial losses but remained down as it resumed dividend payments for the first time since 2007 and declared its turnaround successful in a strong full-year results announcement.

A.G. Barr, the maker of the iconic Scottish soda Irn-Bru, fell despite posting strong full-year results. Investors focused on its report of deflationary pressures in the U.K. beverage market towards the end of the year and its prediction that the environment will remain challenging.

London-listed Russian food retailer Lenta, whose backers include TPG, rose after completing a $225 million share sale to finance store expansion.

But in Paris shares in Carrefour (CRRFY) edged down after the supermarket chain sold 12.7 million treasury shares, equivalent to 1.7% of its share capital, in a private placement.

In Hong Kong, the Hang Seng closed down 0.39% at 24,399.60. The HSBC/Markit Purchasing Managers' Index, a closely watched measure of manufacturing sentiment, dropped more than expected to 49.2 in March, below the 50-point level that signals growth.

In Tokyo, the Nikkei 225 fell 0.21% to 19,713.45 and the Topix closed down 0.29% at 1,587.59.