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.
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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.