Most European stock markets climbed back into positive territory on Tuesday after steep losses the prior day, with gains for banks lifting indexes and TeliaSonera AB rallying after a MegaFon dividend deal.
The Stoxx Europe 600 index (XX:SXXP) +0.80% took on 0.7% to 253.42, after dropping to its lowest level since mid-January on Monday.
Posting the biggest gain in the index, TeliaSonera (SE:TLSN) +7.36% jumped 8.2% after the Swedish telecom operator reached a dividend deal with other shareholders in Russian MegaFon. MegaFon will pay a $5.15 billion dividend to its shareholders and seek an initial public offering.
Among other notable advancers in Europe, Michelin (FR:ML) -2.58% added 7% after it reported a 5.1% increase in revenue in first quarter and reaffirmed its 2012 outlook. HSBC lifted the stock to overweight from neutral.
According to Reuters, the French CAC 40 index (FR:PX1) +1.01% traded 0.8% higher at 3,124.31, further buoyed by the index’s banks. Credit Agricole SA (FR:ACA) -4.47% rose 1.9%, Société Générale SA (FR:GLE) -3.90% added 1.7% and BNP Paribas (SAFR:BNP) -4.07% advanced 1.5%.
Banks were also on the rise in Germany and Commerzbank AG (DE:CBK) -4.60% gained 2.3% and Deutsche Bank AG (DE:DBK) -3.44% rose 1.7%. The DAX 30 index (DX:DAX) +0.85% was up 0.9% to 6,584.26.
Deutsche Lufthansa AG (DE:LHA) -3.83% rose 3.9% after Credit Suisse upgraded the airline to outperform from neutral.
In the U.K., International Consolidated Airlines Group SA (UK:IAG) +3.69% took on 3.3% following an upgrade to outperform from neutral from Credit Suisse.
Miners were also inching higher in the U.K., tracking a rise in metals prices. Fresnillo PLC (UK:FRES) +1.54% rose 1.5%, Antofagasta PLC (UK:ANTO) +0.18% gained 1.1% and Vedanta Resources PLC (UK:VED) +1.54% nudged 1.6% higher.
British banks followed the sector trend in Europe and Barclays PLC (UK:BARC) +2.37% BCS -2.49% increased 2.4%, while Lloyds Banking Group PLC (UK:LLOY) +1.86% LYG -0.53% was 1.3% higher.
Bucking the positive trend in London, British American Tobacco PLC (UK:BATS) -0.48% BTI -0.52% lost 0.6% after Bank of America Merrill Lynch cut the stock to neutral from buy.
