BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets got off to a rough start Tuesday, but ended the session with modest gains. Traders are in a cautious mood ahead of the upcoming flurry of central bank activity this week.
The Federal Reserve has kicked off its 2-day policy meeting and will announce its decision after the European close tomorrow. The Fed is widely expected to hike interest rates by a quarter point.
The European Central Bank, the Bank of England and the Swiss National Bank are all slated to announce their policy decisions on Thursday.
The pan-European Stoxx Europe 600 index advanced 0.63 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.50 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.89 percent.
The DAX of Germany climbed 0.46 percent and the CAC 40 of France rose 0.75 percent. The FTSE 100 of the U.K. gained 0.63 percent and the SMI of Switzerland finished higher by 0.50 percent.
In Frankfurt, Fraport rose 1.49 percent. The transport company which operates Frankfurt Airport in Frankfurt said it had served more than five million passengers in November, up 21.1 percent year-on-year.
In Paris, Atos jumped 7.14 percent after the IT services group made a formal proposal to acquire Gemalto for a total consideration of approximately 4.3 billion euros. Gemalto surged 34.57 percent in Amsterdam.
In London, Balfour Beatty advanced 1.29 percent. The infrastructure group said its performance in 2017 remains in line with board expectations.
Consumer credit reporting agency Experian rallied 2.49 percent. The company said it would acquire a minority stake in mortgage brokerage London & Country Mortgages Limited.
Industrial equipment hire company Ashtead increased 2.03 percent after lifting its full-year guidance and launching a £1bn share buyback program. Glencore lost 1.10 percent ahead of an investor briefing.
Zurich Insurance Group finished higher by 0.40 percent in Zurich after signing a pact to acquire ANZ's life insurance businesses, OnePath Life, in Australia for A$2.85 billion or $2.14 billion.
UniCredit dropped 1.02 percent in Milan after confirming its fiscal 2019 targets.
Germany's economic sentiment weakened more-than-expected in December amid political uncertainty, a closely-watched survey revealed Tuesday.
The ZEW Indicator of Economic Sentiment fell 1.3 points to 17.4 in December, the Mannheim-based think tank ZEW said. The indicator remained below its long-term average of 23.7 and the expected level of 17.6.
French payroll employment growth slowed in the third quarter, the statistical office Insee showed Tuesday. Net payroll job creation reached 44,500 in the third quarter. Employment increased 0.2 percent after rising 0.4 percent in the previous quarter.
UK inflation accelerated unexpectedly to its highest level in more than five years in November, on airfares and computer games, official data showed Tuesday.
Inflation rose slightly to 3.1 percent in November from 3 percent in October, the Office for National Statistics said. Price growth was last higher in March 2012. The inflation rate was expected to remain at 3 percent.
British house price inflation eased for the second straight month in October, figures from the Office for National Statistics showed Tuesday.
The house price index climbed 4.5 percent year-over-year in October, slower than the 4.8 percent rise in September, which was revised down from a 5.4 percent increase reported earlier.
Producer prices in the U.S. increased by slightly more than expected in the month of November, according to a report released by the Labor Department on Tuesday.
The Labor Department said its producer price index for final demand climbed by 0.4 percent in November, matching the increases seen in the two previous months. Economists had expected prices to rise by 0.3 percent.
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