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European equities build on hefty gains

London - European stock markets mostly rose on Tuesday, building on hefty gains won in the previous session, while the aviation and beverage sectors were in focus ahead of the US open.

London's benchmark FTSE 100 index dipped 0.07% to stand at 6 294.45 points in midday deals, hit by losses to heavyweight mining stocks amid falling metals prices according to traders.

In the eurozone, Frankfurt's DAX 30 rose 0.53% to 9 867.27 points and the Paris CAC 40 climbed 0.47% to 4 638.56.

In foreign exchange, the euro climbed to $1.1205 from $1.1187 late on Monday in New York, with the US unit hit by growing expectations that the Federal Reserve will delay until 2016 its first rate-hike in years.

European indices had surged higher on Monday as weak US jobs data fuelled expectations surrounding the Fed's future policy moves.

London and Frankfurt had both jumped by 2.7% and Paris soared 3.5% in the week's first trading day.

On Tuesday, "though they flirted with losses soon after the open, the eurozone indices have looked increasingly perkier... despite yet another slowdown-signalling figure out of Germany, in the form of falling factory orders", noted Connor Campbell, analyst at traders Spreadex.

Official data showed that German industrial orders, a key measure of demand for goods in Europe's biggest economy, had slumped in August.

The month-on-month drop of 1.8% was the second consecutive month of decline, and missed analysts' forecasts.

"Despite Asia moving higher overnight and the US showing a strong close, somewhat disappointing German factory orders are dampening the overall positive sentiment," said Markus Huber, senior analyst at brokers Peregrine & Black.

The aviation sector meanwhile flew into focus Tuesday as EasyJet confirmed its full-year profits outlook and on fallout from the Air France protest violence.

EasyJet was down 0.28% to 1 803 pence, while Air France-KLM slid 1.11% to €6.04.

French President Francois Hollande on Tuesday said that scenes of Air France executives fleeing an angry mob after having their shirts ripped off by striking workers were "unacceptable" and put the image of the country at risk.

With the shirt stripped off his back, the struggling airline's human resources manager Xavier Broseta had to escape over a fence with the help of security guards on Monday after announcing plans to cut  900 jobs.

Brewing bid announcement

In Tuesday trade, brewer SABMiller slid 3.0% to 3 650 pence after "it was revealed that the drinks giant turned down an informal offer from Anheuser-Busch InBev" alongside a disappointing trading update from SABMiller, said Campbell.

AB InBev dipped 0.27% to €98.11.

British brewing company SABMiller has rejected an informal takeover offer from Belgian-Brazilian giant AB InBev, the world's biggest brewer, Bloomberg News said Tuesday.

READ: SABMiller said to have snubbed AB InBev offer

SABMiller has snubbed the bid, worth €90bn, arguing it was too low, the agency reported citing people familiar with the matter.

The initial offer was worth just over 40 per share, but some shareholders wanted closer to 45 a share, according to Bloomberg.

A potential deal would bring together AB InBev's Budweiser, Corona and Stella Artois beers with SABMiller's Foster's, Grolsch and Pilsner Urquell.

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