Most European markets rose Tuesday as investors were hopeful that the European Central Bank (ECB) will soon announce stimulus measures as the GDP data from Germany and France indicate that the euro zone economy continues to falter.
The French CAC 40 index rose 0.72 percent or 24.59 points to 3451. Shares of Societe Generale SA climbed 1.11 percent and shares of BNP Paribas SA advanced 1.01 percent.
London’s FTSE 100 index was up 0.38 percent or 22.33 points to 5854.21. Shares of ITV PLC rose 2.41 percent and shares of Barclays PLC were up 1.50 percent.
The German DAX 30 index advanced 0.79 percent or 54.89 points to 6964.57. Shares of Volkswagen AG rose 1.13 percent and shares of Daimler SE climbed 1.19 percent.
Spain's IBEX 35 was up 0.73 percent or 51.30 points to 7120.90. Shares of Bankia SA advanced 5.40 percent and shares of Abengoa SA rose 2.69 percent.
Investors are focusing on the gross domestic product data for the second quarter released by Germany and France. The German economy grew at 0.3 percent, down from 0.5 percent in the previous quarter.
Meanwhile, the French economy had 0 percent growth in the second quarter, same as in the previous quarter, indicating its difficulty in meeting the growth target of 0.3 percent for the year. The Bank of France said last week that the country’s economy could slip into recession in the third quarter.
The GDP data from Germany and France suggest a worsening economic condition in the euro zone. Eurostat will announce later Tuesday the GDP data for the whole of euro zone.
The continued faltering of the economic growth is expected to put pressure on the ECB to announce bold stimulus measures to boost the financial condition. It is especially hoped that the central bank will buy sovereign bonds that would reduce the escalating borrowing costs faced by Spain and Italy.