LONDON (The Deal) -- European stocks moved higher for the first time in three days on Tuesday amid a mixed bag of corporate earnings and a strong showing from Chinese indices.
The Federal Reserve will this week provide global investors with their major focus. Policy makers begin a two-day meeting on Tuesday, after which the central bank is seen likely to confirm an end to its aggressive, post-credit crisis asset buying while reassuring the world about rates.
In London, the FTSE 100 was up 0.47% at 6,393.40. In Frankfurt the DAX surged 1.5% to 9,035.87 and in Paris the CAC 40 gained 0.47% to 4,116.11.
In London, leading retail lender Lloyds Banking Group (LYG) - Get Lloyds Banking Group plc Sponsored ADR Report fell more than 2% as a "top-up" 900 million pounds ($1.4 billion) provision to compensate customers for mis-selling insurance products tarnished otherwise consensus-beating third-quarter earnings. As expected, the lender said it would cut 9,000 jobs.
Asia- and Africa-focused lender Standard Chartered was down almost 9% after disclosing that bad loans pushed third-quarter profit down 16% and warning of declining second-half profit because of a government tax on banks and regulatory costs.
Swiss lender UBS (UBS) - Get UBS Group AG Report was up more than 3% despite missing third-quarter operating profit forecast as hefty provisioning reassured investors that litigation costs had peaked.
In the Netherlands, telecom KPN (KKPNY) rose 2.4% after reporting a 15% decline in third-quarter earnings while confirming its full-year outlook and promising to pay a dividend for the full year and to increase that payout in 2015.
Pharmaceuticals company Sanofi (SNT) of France declined almost 9% after warning that diabetes drug pricing pressure in the U.S. will hurt 2015 sales.
Mainland Chinese stock indices posted strong gains and in Hong Kong the Hang Seng closed up 1.63% at 23,520.36. President Xi Jinping said the Shanghai free-trade zone could be expanded elsewhere in the country.
In Tokyo, the Nikkei 225 fell 0.38% to 15,329.91.
Takeda Pharmaceutical closed up 1.1% after a Louisiana court granted Takeda and Eli Lilly (LLY) - Get Eli Lilly and Company (LLY) Report more than a 99% cut in a $9 billion damages award connected to cancer risks of their Actos diabetes medicine.
Takeda said it still plans to appeal.