LONDON ( The Deal) -- European markets rose on Tuesday, as investors took heart from the first rise in German investor confidence in 2014. Top gainers include British builder Balfour Beatty  (BAFYY) and Dutch telecoms giant Royal KPN (KKPNY) .

Frankfurt's DAX led benchmark indices higher, advancing 1.15% to 9,413.80. In London, the FTSE 100 climbed 0.49% to 6,704.84, while in Paris the CAC 40 added 0.67% to 4,254.38. 

Investors were in a buying mood after the ZEW Center for European Economic Research in Mannheim said its indicator for economic sentiment in Germany increased to a reading of 11.5 in November from minus 3.6 in October. The November reading is well above the 0.5 predicted in a Bloomberg News survey.

The good news out of Deutschland offset an unexpected acceleration in U.K. inflation to 1.3% in the year to October from 1.2% in September, as price hikes for computer games outpaced smaller increases in motor fuels and airfares.

European investors also welcomed news out of Japan, where Prime Minister Shinzo Abe announced plans to dissolve the lower house of parliament on Nov. 21 and put an unpopular sales-tax hike on ice. Tokyo's Nikkei index rose 2.18% to 17,344. 

Back on the continent, Balfour Beatty gained 5.8% in London after Britain's biggest builder said its construction services order book increased to 7.9 billion ($12.4 billion) pounds in the third quarter, mainly propelled by an increase in the United States and by contracts in the United Kingdom. 

In Amsterdam, Royal KPN NV rose 2.2%. The biggest Dutch phone company said it has agreed to buy the remaining 40% it doesn't already own in Dutch fiber optics group Reggefiber for 610 million euros. 

Shares in in Patrick Drahi's Luxembourg-based cable company Altice sank more than 4% on news that the company's private-equity owners are selling 2 million more shares than originally planned. Carlyle Group and Cinven Group plan to sell 7.5 million shares at 45 euros each, for a total of 337.5 million euros, according to news reports. 

European carmakers also motored ahead on news that passenger car registrations in the EU rose 6.5% in October from a year earlier to more than 1.07 million units sold, marking the 14th consecutive month of year-on-year growth.

Volkswagen  (VLKAY) rose 1.43%, Renault  (RNSDF) gained 1.8%, and PSA Peugeot Citroen was up 1.3%. 

But investors gave a mainly lukewarm reception to full-year earnings for discount carrier EasyJet (ESYJY) , whose shares were down 1.23% in London. Europe's second-largest discount airline said that pretax profit rose 21.5% to 581 million pounds for the year ended Sept. 30, and called for increasing dividends from one third to 40% of annual after-tax profit 40%.

 

 

 

 

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