European stock prices started in the red but quickly trended upward in early trading on Tuesday as investors shrugged off data showing continued decline in China’s once robust manufacturing sector.
The Dax advanced 1.25% as of 9:00AM GMT, while the CAC 40 inched up 0.38%. The FTSE and the European benchmark Euro Stoxx 50 both gained, tacking on 0.49% and 0.87% respectively.
In Asian markets, stock prices were mostly higher despite reports of China’s manufacturing sector contracting for the seventh straight month.
Investors remained upbeat following the Chinese central bank’s move cutting the reserve requirement ratio (RRR). Analysts say the decision was designed to enhance liquidity in the country’s financial system.
Improving oil prices helped bolster investor sentiment following reports of decreasing U.S. shale production. Oil futures on the New York Mercantile Exchange went up above $34 per barrel on Tuesday, while Brent oil rose to $36.73.
Meanwhile, Barclays shares (LON:BARC) were under pressure on Tuesday, plummeting by more than 9%, after the British bank reported an 8% decline in pre-tax profit for the previous year.
Elsewhere, commodities miner and trader Glencore (LON:GLEN) reported a 32% drop in full-year core earnings, sending its shares spiraling down. The mining firm cited falling commodity prices as the main reason for the decline. Glencore shares were down 2% following the publication of the earnings report.