By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets advanced on
Tuesday, climbing back from their biggest three-day fall since June
last year, as miners rose after a broker upgrade and banks
recovered from recent sharp losses.
The Stoxx Europe 600 index added 0.6% to 323.80. On Monday, the
benchmark closed at the lowest level since Dec. 20 on renewed
uncertainty about emerging markets, after a slowdown in the Chinese
manufacturing sector spooked investors out of risky assets such as
equities.
Among major movers on Tuesday, Software AG rallied 7.1% after
the German company said it reached a record level of license sales
in the fourth quarter.
Mining firms were on the rise after Nomura lifted its rating on
the European metals-and-mining sector to neutral from bearish. The
analysts said BHP Billiton PLC (BHP) , up 1.3%, is now their top
pick, followed by Rio Tinto PLC (RIO), 1.9% higher.
Banks were also mostly higher after suffering some of the worst
declines in the recent days' market selloff. Shares of Banco
Espirito Santo SA gained 4.2% in Lisbon, CaixaBank SA added 3.6% in
Madrid, and Lloyds Banking Group PLC (LYG) picked up 2.3% in
London.
Later in the morning, attention turns to the U.K., where
gross-domestic-product data for 2013 are expected to show the
country's economic growth last year was the strongest since 2007.
Analysts forecast an expansion of 1.9% for the full year and
economic growth of around 0.7% in the fourth quarter.
The U.K.'s FTSE 100 index gained 0.3% to 6,571.59 ahead of the
data. France's CAC 40 index picked up 0.7% to 4,172.47, while
Germany's DAX 30 index added 0.6% to 9,408.59.
More must-reads from MarketWatch:
Deflation fears, U.K. GDP and big earnings to drive Europe's
week ahead
India surprises with rate hike; stocks, rupee fall
Smartphone shipments topped 1 billion in 2013: IDC
Subscribe to WSJ: http://online.wsj.com?mod=djnwires