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London - European stock markets rose on Tuesday awaiting a key meeting of the US Federal Reserve and following a mixed batch of company earnings.
London's benchmark FTSE 100 index advanced 0.64% to stand at 6 397.69 points in London midday deals.
Frankfurt's DAX 30 rallied 1.44% to 9 030.77 points and in Paris the CAC 40 climbed 0.43% to stand at 4 114.40 compared with Monday's closing value.
Madrid surged 1.75% and Milan soared 1.89%.
The euro rose against the dollar and British pound.
The ruble fell to new record low levels against the euro and dollar, and was at 54.04 to the euro and 42.50 to the dollar.
READ: Dollar steady in Asia before Fed meeting
In Stockholm, the Swedish central bank lowered its key interest rate by a quarter of a point to zero percent to push up inflation, which is running at negative levels.
Europe's main stock markets had fallen sharply on Monday as negative German business data overpowered broad relief after the European Central Bank gave passing grades to a comfortable majority of eurozone banks subjected to stress tests.
READ: German business confidence slumps
Asian equity markets ended mixed on Tuesday ahead of the US Federal Reserve's next policy meeting, which will be scrutinised for an idea of what its plans are for interest rates in the world's biggest economy.
In foreign exchange deals, the euro rose to $1.2707 from $1.2698 late in New York on Monday.
The European single currency edged up to 78.80 British pence from 78.78 pence.
The British pound advanced to $1.6125 from $1.6117 on Monday.
"Until we see the outcome of the Fed meeting on Wednesday, it may be that the dollar loses some ground against the pound and euro over the next few days," said traders Currencies Direct in a note to clients.
"Underpinning the (recent) dollar rally, has been the expectation that the Fed, after winding down its asset purchase scheme this month, will begin to raise rates in 2015. However, talk yesterday around the markets was beginning to raise doubt that a rate rise will happen at all in 2015," they noted.
On the London Bullion Market, the price of gold dipped to $1 227.98 an ounce from $1 228.75 an ounce on Monday.
Shares in Standard Chartered dived 9.40% to 992.1 pence after the emerging markets bank issued a profit warning and said it would "remain watchful" in India and China after a sharp fall in quarterly pre-tax profits.
READ: StanChart shares tumble to 5-year low
Lloyds Banking Group meanwhile gave up 2.44% to 73.50 pence after the British state-rescued lender said it aims to shed 9 000 jobs and close 150 branches over the next three years to cut costs.
Alongside news that it had improved profits, LBG said it would cut about one-tenth of its workforce as customers switch to banking online.
READ: UK's Lloyds Banking Group to cut 9 000 jobs
"The banks are back in investors' bad books, after updates from Standard Chartered and Lloyds spooked traders," said David Madden, market analyst at IG traders.
BP shares rose 0.63% to 432.95 pence despite the energy major revealing a slump in profits.
READ: BP profits slump on sliding oil prices
Shares in French drugmaker Sanofi plunged 9.35% to €75.60 because net profit slipped in the third quarter, the group was cautious about the US market for diabetes treatments, and investors are concerned about criticism of the chief executive for living in Boston.
Novartis saw its stock price shoot up 2.33% to 87.70 Swiss francs, outperforming the the Swiss stock exchange, as the pharmaceuticals giant said strong sales of new products had helped push its net profit up 45% in the third quarter, despite competition from copycat generic drugs.
