Financial and energy sectors lifted European equities on Tuesday, but investors focused on global central bank interest rate decisions, notably the U.S. Federal Reserve. After three days of losses, the pan-European STOXX 600 index (.STOXX) rose 0.3%.
Oil prices touched four-month highs, helping the energy sector (.SXEP) rise 1.4%. German bank Commerzbank (CBKG.DE) led the banking index (.SX7P) up 1.1%. After last week's hotter-than-expected inflation statistics reduced traders' predictions for a June interest rate cut, investors focus on Wednesday's Fed monetary policy meeting.
On Tuesday, the Bank of Japan (BOJ) halted eight years of negative interest rates, and the Bank of England will announce its rate decision later in the week.
The BOJ decision "turned out to be kind of a non-event and so now, it's wait and see (for) what the Fed and Bank of England has to say," said Interactive Brokers chief strategist Steve Sosnick.
The European Central Bank may start cutting rates in June after many policymakers, including Vice President Luis de Guindos, hinted at it. Europe's technology stocks (.SX8P) fell 0.4%, limiting advances. "Technology stocks are weaker because of the profit-taking we're seeing in the U.S. and other global technology stocks," he said.
Unilever (ULVR.L), gained 3.1% after the consumer goods major announced a cost-cutting scheme that will remove 7,500 positions and spin off its ice cream operation.
Hemnet (HEM.ST), rose 7.6% to the top of STOXX 600 after Jefferies raised its rating, while Siemens (SIEGn.DE) fell 5.8% after its finance chief said second-quarter revenues at its flagship digital industries division will be flat.
After Airbus (AIR.PA) canceled talks to buy Atos' BDS cybersecurity subsidiary, shares fell 19%. On Tuesday, group reported that German investor confidence rose more than predicted in March due to ECB interest rate cuts and optimistic Chinese signals. DAX index (.GDAXI) rose 0.3%.
follow for more updates