UKX FTSE 100 Index

By Victor Reklaitis, MarketWatch

Strategist: 'Investors are still giving President Trump the benefit of the doubt'

European stocks stepped higher Tuesday, as analysts said worries were abating over whether the Trump administration will be able to push through pro-growth reforms in the world's largest economy.

The Stoxx Europe 600 index rose 0.3% to 376.05, rallying after Monday's drop of 0.4% (http://www.marketwatch.com/story/banks-lead-european-stocks-lower-as-trump-rally-falters-2017-03-27).

The pan-European benchmark slid on Monday along with equities worldwide after a Republican overhaul of the U.S. health care system fizzled, sparking worries about President Trump's other business-friendly plans.

"Markets are calmer today," said Hussein Sayed, FXTM's chief market strategist, in a note. American tax reform, infrastructure spending and deregulation now appear less likely, "but investors are still giving President Trump the benefit of the doubt," he said.

"However, if they see that these plans will face the same destiny as the health care act, markets will soon turn to aggressive selling," Sayed added.

National indexes:The U.K.'s FTSE 100 (http://www.marketwatch.com/story/uk-stocks-recover-slightly-from-slide-pound-resilient-before-brexit-trigger-2017-03-28) was fractionally higher at 7,293.65, trying to stabilize after Monday's 0.6% fall.

Traders in London appeared to avoid big bets ahead of a much-anticipated step in the U.K.'s withdrawal from the European Union. On Wednesday, Prime Minister Theresa May is expected to invoke Article 50 (http://www.marketwatch.com/story/uk-prime-minister-to-trigger-start-of-brexit-process-on-march-29-2017-03-20) to start the Brexit process.

Germany's DAX 30 index gained 0.6% to 120.67.52, while France's CAC 40 index inched down by less than 0.1% to 5,014.60.

Individual movers: Shares in London-listed Wolseley PLC (WOS.LN) jumped 6% after the plumbing and building materials supplier reported a fall in interim net profit, though trading profit -- the company's main metric -- rose (http://www.marketwatch.com/story/wolseley-profit-down-to-change-name-exit-nordics-2017-03-28) thanks in part to a boost from exchange rate movements.

Wolseley also said it plans to exit the Nordic region due to a lack of synergies with the rest of the company and change its name to Ferguson PLC, its U.S. brand.

(END) Dow Jones Newswires

March 28, 2017 04:48 ET (08:48 GMT)

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