European Markets Mixed After German Economic Confidence Advances

(RTTNews) - The European markets were trading mixed on Tuesday afternoon, after Germany's economic confidence rose to the highest level since May. Yet, gains were limited amid growth worries, ahead of the FOMC meeting later today.

Survey results from Centre for European Economic Research showed the indicator of economic sentiment in the region's growth engine rose sharply by 23.4 points to 34.9 in December. This was the second consecutive rise.

Eurozone private sector growth accelerated more than expected to a 2-month high in December, flash survey data from Markit Economics revealed. The composite output index advanced to 51.7 in December, the highest reading in two months, from 51.1 in November. Economists had forecast the PMI to come in at 51.5.

U.K. inflation slowed more than expected in November, according to data from the Office for National Statistics. Inflation slowed to 1 percent in November from 1.3 percent in October. Economists had forecast prices to rise by 1.2 percent.

European car sales grew at a slower pace in November, a monthly report released by the European Automobile Manufacturers Association said. New passenger car sales increased 1.4 percent year-over-year in November to 953,886 units, slower than the 6.5 percent rise in October. Sales expanded for the fifteenth consecutive month.

The Bank of England, which announced the results of its stress tests, said the Co-operative Bank, Lloyds Banking Group and Royal Bank of Scotland should strengthen their capital position.

The Euro Stoxx 50 index of eurozone bluechip stocks was down 0.51 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, fell 0.21 percent.

The German DAX and the FTSE 100 index of the U.K. were moderately higher, while the French CAC 40 slipped 0.40 percent, erasing early gains. Switzerland's SMI, however, lost around 0.6 percent.

In Frankfurt, airline Lufthansa rose 2.6 percent and tire maker Continental added 2.1 percent.

Daimler, Volkswagen and BMW climbed between 2.1 percent and around 1 percent.

Deutsche Telekom advanced around 1 percent. UK-based fixed-line operator BT Group has entered into exclusive talks to acquire the UK's largest mobile operator EE Ltd. for $19.6 billion in cash and stock. BT is in talks with EE's joint shareholders Deutsche Telekom and French telecom giant Orange.

Orange gained 2.7 percent in Paris. Saint Gobain and Vallourec were adding 2.5 percent and 1.6 percent, respectively.

Renault gained 0.8 percent while Peugeot added 1.1 percent.

In London, Weir Group and Intertek climbed 4 percent each.

Capita was advancing 3.5 percent while Hargreaves Lansdown gained 3.4 percent.

Barclays and Standard Chartered were in the green, while Royal Bank of Scotland fell.

Meanwhile, Repsol fell close to 2 percent in Madrid after the oil giant agreed to buy Canadian oil firm Talisman Energy.

The Asian stocks fell, as a relentless plunge in oil prices and sluggish Chinese manufacturing data underscored the fragile nature of global economic recovery.

In the U.S., futures point to a cautious open on Wall Street. In the previous session, stocks ended lower, as oil prices extended their sell-off and data on industrial production and home-builder confidence painted a mixed picture of the economy. The Dow and the S&P 500 fell about 0.6 percent each, while the tech-heavy Nasdaq lost a percent.

Crude for January delivery fell $1.56 to $54.35 per barrel, while gold dropped $2.7 to $1205.0 a troy ounce.