Italian Stocks End at Over 2-Week High

German equities closed in the green on Tuesday, with the blue-chip DAX index 0.42% higher, as investors continue to evaluate the uncertain political situation in France and its possible impact on markets.

"Spreads on French government bonds are touching new highs again as Le Pen and the opposition are threatening to topple the government (again). Spillovers to other markets remain limited, but the uncertainty ahead does help support the prevalent dovish sentiment," ING said.

Back at home, the ifo Institute's business climate indicator for the German automotive sector declined in November, signaling a sharp deterioration in sentiment among companies due to continued demand weakness. Ifo industry expert Anita Wölfl also attributed the downbeat reading to the "current mix" of a sector-wide transformation, competitive pressures and a weak economy.

In more economic data news, the latest PMI data for Germany and the wider eurozone will be released tomorrow. The index is used to gauge a country's economic health through a survey of business executives in the manufacturing and services sectors.

On the corporate side, UBS upgraded BMW to buy from neutral, with its price target up to 83 euros from 75 euros. At the same time, the research firm downgraded Mercedes-Benz and Porsche AG to neutral. The automotive stocks respectively lost 0.11%, 2.53% and 0.61% on Xetra.

"We believe BMW will have (1) improving FCF generation y/y, unlike premium competition, (2) potentially the most generous cash return policy no longer limited to FCF, (3) the best position to fully comply with EU CO2 regulation without aggressively pushing margin-dilutive BEV sales in the region, (4) relative to its German peers, the best natural hedge against potential US import tariffs on EU-made cars," UBS wrote.

In Milan, the FTSE MIB Index went up by 342 points or 1.02 percent on Tuesday.

Top gainers were Buzzi Unicem (3.15%), Saipem (2.87%) and Prysmian (2.41%).

Swiss stocks ended Tuesday little changed as investors assess the latest inflation data at home while keeping an eye on the political turmoil unfolding in neighboring France.

The Swiss Market Index ticked up 0.04% at the end of the trading day.

Switzerland's annual inflation rate stood at 0.7% in November, up from 0.6% in October and lower than market forecasts of 0.8%. On a monthly basis, the consumer price index edged down 0.1%, unchanged from the previous month.

Over in France, the government is on the edge of collapse after the left-wing and far-right parties filed no-confidence motions against Prime Minister Michel Barnier.

"This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025," analysts at ING said.

In company news, Swiss Life presented its strategy and financial targets for 2025-2027 at its investor day. The insurer aims to increase its fee result to more than 1 billion francs by 2027, higher than the expected 850 million francs to 900 million francs under its 2024 strategy. It also plans to boost the dividend payout ratio to over 75% from 2025 and kick off a 750 million-franc share buyback program set to run until May 2026, among other goals. The stock was down 4.69% at closing.

Meanwhile, Partners Group gained 1.33% after agreeing to purchase Switzerland-based residential sector-focused real estate investment platform Empira Group as part of the private equity firm's strategy to further expand its real estate portfolio. The deal is anticipated to close in the first half of 2025.

The FTSE 100 rose about 0.6% to finish at 8,359 on Tuesday, a high level not seen since mid-October and extending its winning to a fifth session.

Investors awaited a crucial US jobs report later this week, along with more economic data and speeches from Fed officials, including Chair Jerome Powell.

In the UK, all eyes turn to BoE Governor Andrew Baliey's speech on Wednesday for more clues into the central bank's policy path.

Among equities, Marks & Spencer led the way, up 3.5%, followed by Easyjet (+3.3%) after Morgan Stanley, Barclays and Peel Hunt lifted their price targets on the stock.

British Gas owner Centrica was also among the top gainers, rising 3%.

Additional support came from precious metals miners and energy companies.

Conversely, several defensive stocks closed in the red, including BT Group, BAT, and Imperial Brands.

In London, the FTSE 100 Index went up by 42 points or 0.51 percent on Tuesday.

Top gainers were Centrica (3.53%), Easyjet Plc (3.18%) and Fresnillo (3.09%).

Biggest losses came from BT (-2.80%), British American Tobacco (-1.73%) and Schroders (-1.43%).

The European stock markets closed higher in Tuesday trading as The Stoxx Europe rose 0.44%, Germany's DAX gained 0.51%, the FTSE in London increased 0.56%, France's CAC was up 0.26%, and the Swiss Market Index nudged 0.04% higher.

In Switzerland, the consumer price index declined 0.1% in November compared with the previous month, and rose 0.7% compared with a year earlier, according to the Swiss Federal Statistical Office. The FSO attributed the monthly decline to lower prices for hotels and international package holidays, as well as for new cars and fruiting vegetables.

And in corporate news, Apple must repay as much as 785 million British pounds ($994.4 million) to as many as 13,000 developers for charging up to 30% for commission fees on App Store sales, Bloomberg News reported Tuesday, citing a professor leading the class action lawsuit. Apple did not immediately respond to MT Newswires' request for comment.

BlackRock's proposed acquisition of British investment data firm Preqin is being investigated by the UK's Competition and Markets Authority, the regulator said Tuesday. The CMA said it is looking into whether the proposed merger could result in a "substantial lessening of competition within any market or markets" in the UK for goods or services.

French energy company TotalEnergies is close to acquiring VSB Group from private equity firm Partners Group for 2 billion euros ($2.10 billion), Bloomberg reported Tuesday, citing people familiar with the matter. Partners Group declined to comment, and TotalEnergies did not immediately respond to MT Newswires' request for comment.

The Carlsberg Group said Tuesday that it has agreed to divest its shares in Russian beer company Baltika Breweries. Under the terms of the sale, Baltika Breweries will transfer all its shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan to the Carlsberg Group. The Danish brewing company will receive a cash consideration as well as Baltika Breweries' shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.