European stock markets opened with a bang on Tuesday as investors responded to exceptionally strong Chinese industrial data that was released overnight and some positive economic numbers that came out closer to home.

The Caixin Chinese Manufacturing PMI for December came in at its highest level since January 2013, after rising sharply during the recent month, and has helped to damp concerns of another slowdown in the world's second-largest economy during the first quarter.

It also bolstered commodity prices and lent support to the broader reflation narrative that has gripped markets since the election of Donald Trump to the U.S. presidency in November. Additionally, economic data from the U.K. and Germany added to a prevailing sense of optimism among investors about the year ahead.

The net effect made for buoyant stock markets, mixed currencies and a savage selloff in European bond markets.

The CAC 40 in France led the charge with a gain of round 0.50%, while London's FTSE 100 followed closely behind after adding just more than 0.40%. Germany's DAX index trailed its major European rivals for the session, with a a loss of just more than 0.1%.

European currencies were mixed, despite positive economic news from most corners.

In the UK, sentiment among purchasing managers in the manufacturing industry rose to its highest level since July 2014, according to the Markit Manufacturing PMI.

The news boosted the pound against the euro, yen and Swiss franc while also helping it to stem the advance of the dollar for a time, at least, during the early hours of the session.

This is while German unemployment figures showed the number of jobless people falling further than was expected during November, dropping by 17,000 against expectations for a fall of around 5,000 claimants.

But the announcement did little to ease pressure on the euro, which slid by nearly 100 points against a strengthening U.S. dollar, while also dropping against the pound and the Swiss franc.

Bond markets, however, moved in unison, with yields rising across the continent -- by more than 10 basis points in some cases.

Italian 10-year yields were up 13 basis points to 1.87%. German yields were up 9 basis points to 0.28%. This is while French yields jumped 14 basis points to 0.8% and U.K. yields spiked by 12 basis points to 1.22%.

In individual stocks, gains for French stock markets were boosted by car maker Peugeot  (PEUGF) , whose stock rose 3.5% in early trading, during what has been a positive session for automakers.

In London, the benchmark FTSE 100 was supported by returns at Glencore (GLCNF) , among others, whose shares rose after commodity prices were buoyed by the Chinese industrial data. Glencore stock was up around 3.5% just ahead of the close.

Additionally, London Stock Exchange (LDNXF) said that it is in talks with Euronext over the sale of its French subsidiary clearing business, which could result in a €510 million ($532 million) deal. The shares were up around 0.7% shortly ahead of the close.

In Germany the DAX was supported by gains at auto giant VW Group (VLKAY) , which was up 2.8% after the company said that it has now become the number one car seller in Sweden. This came just days after it reported double-digit sales growth in the U.S. for the month of December.