By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets posted
broad-based gains on Tuesday, boosted by stronger-than-expected
German economic-sentiment data, with shares of Danone SA among
major advancers after a job-cut announcement.
The Stoxx Europe 600 index rallied 1% to 289.75, on track to
break a three-day losing streak.
Shares of Danone jumped 5.3% after the yogurt maker announced
plans to slash around 900 jobs in Europe in response to the
region's downturn.
Standard Chartered PLC picked up 2.1%, as Morgan Stanley lifted
the bank to overweight from equal weight.
Elsewhere, investors looked to Germany where the ZEW Indicator
of Economic Sentiment jumped 16.7 points to 48.2 in February,
exceeding analysts' expectations of a 35.0 print.
The upbeat data followed an encouraging January reading, where
the index jumped to the highest level since May 2010, fueling hopes
that Europe's largest economy is making its way out of the
crisis.
February's current economic-conditions indicator, however,
dropped slightly to 5.2.
"The fact that the index is now firmly in positive territory
means that a large majority of investors see economic conditions
improving in the next six months," Jennifer McKeown, senior
European economist, said in a note.
"But there are a few caveats. First, the index has never been
well correlated with GDP growth and we will await February's
business surveys for stronger evidence of a recovery," she
added.
Investors further shook off U.S. housing data showing a gauge of
confidence among home builders declined in February, the first
weakening since April. The index ticked down to 46 in February from
47 in January, below expectations of a 48 result.
U.S. stocks opened higher on Wall Street on the first trading
day of the week. U.S. markets were Monday closed for the Presidents
Day holiday.
Back in Europe, Germany's DAX 30 index added 1.5% to 7,739.62,
with shares of health-care major Bayer AG up 3.1%. The company said
it has initiated trials on the blindness treatment VEGF Trap-Eye
with Regeneron Pharmaceuticals Inc. (REGN).
In France, the CAC 40 index put on 1.7% to 3,729.03. Shares of
Carrefour SA gained 3.4% after J.P. Morgan Cazenove initiated
coverage of the supermarket retailer with an overweight rating.
Shares of Sanofi SA (SNY) put on 2%, as the drug maker said the
U.S. Food and Drug Administration has accepted to review an
application for the diabetes drug lixisenatide.
The FTSE 100 index gained 0.8% to 6,365.47, with shares of
Barclays PLC (BCS) 1.2% higher.
Shares of Vodafone (VOD) declined after a broker downgrade, off
2.3%. Bernstein cut the wireless-telecom firm to underperform from
market perform.
Outside the main index in London, shares of Drax Group PLC
rallied 5.9% as the electric-utility firm's 2012 results beat
expectations.
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