Positive data from Germany and France push Europe higher

On Tuesday European stocks advanced as data from Germany and France signaled that the region’s economic recovery is on track. U.K. assets showed resilience in the wake of a suicide bomb attack.

Technology companies helped spur the Stoxx Europe 600 Index after Nokia Oyj settled a litigation with Apple Inc. The U.K.’s FTSE 100 Index rose a third day, the pound pared declines and gilts were steady after a terrorist attack killed at least 22 people at a concert in Manchester. The dollar declined after the Washington Post reported Donald Trump asked intelligence chiefs to publicly deny collusion between his campaign and Russia. Oil dropped, halting a four-day rising streak that took the price of crude above $51 a barrel.

Confidence is building in the European economy, with data on Tuesday confirming the German economy is firing on all cylinders and France’s is gathering momentum, while a euro-area Purchasing Managers’ Index showed manufacturing in the bloc expanded at the fastest pace in more than six years. That’s bolstering the case for investing in the region as political wrangling in Washington rumbles on, diverting attention from President Trump’s spending and tax plans.

The Stoxx Europe 600 Index gained 0.2 percent by 10:55 a.m. in London. The U.K.’s FTSE 100 Index added 0.1 percent. Futures on the S&P 500 climbed 0.1 percent after the underlying gauge rose 0.5 percent on Monday.

The yield on 10-year Treasury notes was little changed at 2.25 percent. German benchmark yields slipped two basis points while those in France and the U.K. were little changed.

WTI crude fell 0.9 percent to $50.69, after jumping above $51 per barrel on Monday. Gold rose less than 0.1 percent to $1,261.01 an ounce.

Japan’s Topix dropped 0.2 percent after swinging between gains and losses. South Korea’s Kospi rose 0.3 percent.