By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets posted solid
gains on Tuesday, with banks in the driver's seat, as investors
took inspiration from Asia, where a weaker yen spurred a rally for
exporters.
The Stoxx Europe 600 index climbed 1.2% to 308.07, adding to a
0.3% gain from Monday.
Shares of GlaxoSmithKline PLC (GSK) put on 2.2%, after Deutsche
Bank lifted the drug maker to buy from hold, saying upcoming
regulatory decisions are likely to be positive and that the
pipeline looks promising.
Another drug firm, Novo Nordisk AS (NVO) added 0.8%, after
Deutsche Bank lifted it to hold from sell.
Banks also posted some of the biggest advances, with shares of
HSBC Holdings PLC (HBC) up 2.4% in London, Banco Santander SA (SAN)
3% higher in Madrid and BNP Paribas SA rising 2.8% in Paris.
For the broader European stock markets investors were inspired
by gains in Asia, where Japanese exporters got a lift from a weaker
yen. The dollar (USDJPY) bought Yen102.037, up from Yen101.09 late
Monday.
Later in the session, attention shifts to the U.S., where
consumer-confidence data and the S&P/Case-Shiller Home Price
Index will help gauge the pace of the recovery in the world's
largest economy. Data from the U.S. have been put in the spotlight,
after Federal Reserve Chairman Ben Bernanke last week said the
central bank could start tapering its bond-purchase program if data
continue to improve.
U.S. stock futures pointed to a higher open on Wall Street.
In Europe, the U.K.'s FTSE 100 index returned from a long
weekend with a 1.6% gain to 6,761.50.
AstraZeneca PLC (AZN) rose 3.2%, after saying it will buy
Omthera Pharmaceuticals Inc. (OMTH) for $12.70 per share, valuing
the company at $323 million.
Miners, however, showed weakness after J.P. Morgan Cazenove
slashed the outlook for most metals prices and cut the price
targets of some of the U.K.'s largest mining firms.
Shares of Eurasian Natural Resources Corp. dropped 2.4% and
Anglo American PLC shaved off 0.5%.
France's CAC 40 index added 1.4% to 4,050.89, while Germany's
DAX 30 index picked up 1.1% to 8,476.64.
Outside the major indexes, shares of Victrex PLC jumped 5.7%,
after the films and coatings firm increased interim dividends by
15%.
Luxury-watch maker Cie. Financière Richemont SA gained 2.6%,
after data from the Federation of the Swiss Watch Industry said
watch exports rose 5.7% in April.
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