(MENAFN- AFP) European equities mostly advanced on Tuesday after surprise news of business confidence at a two-year high in eurozone powerhouse Germany and a new runway for London's busy Heathrow Airport.
UK stocks rose after the government backed Heathrow's expansion, in a move it said would bring economic benefits worth up to £61 billion (69 billion euros, $75 billion). London share prices added 0.8 percent in mid-afternoon trading.
In the eurozone's main markets, Frankfurt gained 0.2 percent and Paris remained flat.
"European shares are trading little changed to moderately higher ... on a better than expected German Ifo index," said analyst Markus Huber at trading firm City of London Markets.
German business confidence defied predictions in October, hitting the highest level since April 2014, the Ifo economic institute revealed.
The Munich-based institute's headline business confidence index hit 110.5 points in October, up one point from the September reading of 109.5 points.
In London, British Prime Minister Theresa May's government approved a third runway at Heathrow Airport after a long-running row that pitted environmental campaigners and local residents against the business community.
The government said the move would create 77,000 additional local jobs over the next 14 years. Proposals to expand an existing runway at Heathrow or build a second runway at Gatwick airport were rejected.
"London businesses will welcome the decision by the government to add a new runway at Heathrow," noted CMC Markets analyst Jasper Lawler.
"It will be a multi-year boom for the businesses that win contracts to build and serve a bigger Heathrow."
ETX Capital trader Neil Wilson said the announcement was a "good signal" for businesses, but cautioned that it could take "a very long time" -- and added there were still concerns over who would foot the bill.
- Banking woes rock Milan -
On the downside in Europe, Milan stocks fell 0.4 percent on fresh turmoil in the Italian banking sector, after troubled lender Monte Paschi di Siena (BMPS) unveiled plans to axe 2,600 jobs and close 500 branches.
BMPS unveiled the overhaul as it posted a net loss of 1.15 billion euros ($1.3 billion) in the third quarter.
Italy's third-biggest lender will also seek improvements of its loans and risk reduction.
"It is the kind of bitter pill the Italian banking sector as a whole better get used to taking if it wants to avoid being the biggest threat to the eurozone's stability," said Spreadex analyst Connor Campbell.
On Wall Street stocks dipped in opening trade Tuesday as cautiousness over the US presidential election offset a trove of largely solid corporate earnings.
Briefing.com analyst Patrick O'Hare said investors are "on edge" due to uncertainties, such as the possibility that a cyberattack could disrupt the vote.
"Hesitation over the election is likely one of the reasons why trading volume has continued to be light," O'Hare said.
Around 20 minutes into trade, the Dow Jones Industrial Average was at 18,210.22, down 0.07 percent.
The broad-based S&P 500 lost 0.16 percent, while the tech-rich Nasdaq Composite Index was little changed.
- Key figures around 1345 GMT -
London - FTSE 100: UP 0.8 percent at 7,045.07 points
Frankfurt - DAX 30: UP 0.2 percent at 10,787.22
Paris - CAC 40: FLAT at 4,552.15
Milan - FTSE MIB: DOWN 0.4 percent at 17,224.95
EURO STOXX 50: FLAT at 3,094.28
Tokyo - Nikkei 225: UP 0.8 percent at 17,365.25 (close)
Hong Kong - Hang Seng: DOWN 0.2 percent at 23,565.11 (close)
Shanghai - Composite: UP 0.1 percent at 3,131.94 (close)
New York - Dow: DOWN 0.07 percent at 18,210.22
Euro/dollar: DOWN at $1.0861 from $1.0877 Monday
Dollar/yen: UP at 104.77 yen from 104.21 yen
Pound/dollar: DOWN at $1.2131 from $1.2239
Euro/pound: UP at 89.54 pence from 88.87 pence
Oil - West Texas Intermediate: DOWN 21 cents at $50.31 per barrel
Oil - Brent North Sea: DOWN 29 cents at $51.17
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.