European shares were trading higher on Tuesday after a survey showed business growth across Europe remained strong last month despite shortages of inputs.
The final composite output index fell to 56.2 in September from 59.0 in August. The flash reading was 56.1.
“Although for now the overall rate of expansion remains relatively solid by historical standards, the economy enters the final quarter of the year on a slowing growth trajectory,” Chris Williamson, chief business economist at IHS Markit said.
Elsewhere, the final reading of the IHS Markit/CIPS composite Purchasing Managers’ Index (PMI), which combines Britain’s services and manufacturing sectors, edged up to 54.9 from 54.8 in August. That was also higher than the preliminary estimate of 54.1.
French industrial production growth doubled in August largely driven by the rebound in the manufacture of machinery and equipment and mining, separate data showed.
Industrial production grew 1 percent month-on-month, faster than the 0.5 percent increase in July. Economists had forecast the rate to slow to 0.3 percent.
The pan European Stoxx 600 climbed 0.7 percent to 453.69 after declining half a percent on Monday.
The German DAX rose 0.4 percent, France’s CAC 40 index jumped 0.8 percent and the U.K.’s FTSE 100 was up 0.6 percent.
Higher yields lifted banks, with BNP Paribas, Societe Generale, Credit Agricole, Lloyds Bank and Standard Chartered Bank climbing 2-3 percent.
Reinsurance giant Swiss Re edged down slightly. The company announced its estimated preliminary claims burden from Hurricane Ida of approximately $750 million.
British Baker and fast-food chain Greggs jumped 5.6 percent after raising its annual profit forecast.
Turnaround specialist Melrose dropped 2.2 percent after it warned of chip shortages and supply chain problems.
Infineon Technologies rallied 2.3 percent after confirming its 2021 revenue and segment result margin guidance. For fiscal 2022, the company expects strong revenue increase and a further margin uplift.
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