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London - European stock markets rose and the euro gained against the dollar on Tuesday in reaction to upbeat eurozone data, while share prices were boosted by a strong showing in Tokyo.
London's FTSE 100 index climbed 0.63% to stand at 6 616.02 points nearing midday in the British capital.
Frankfurt's DAX 30 advanced 0.79% to 8 425.25 points and the CAC 40 in Paris won 0.30% to 4 083.86 compared with Monday's closing values.
"It's been a bright start to the day so far in Europe, with more data suggesting the recovery in the eurozone is finally underway," said Craig Erlam, market analyst at Alpari traders.
"Of course, any recovery is going to be extremely fragile, but compared to the last couple of years, it's very encouraging."
Industrial output in the 17-nation eurozone bounced back sharply in June, another pointer that the single currency bloc is finally edging out of recession, official data showed on Tuesday.
With overall growth figures for the second quarter due on Wednesday expected to show a switch out of recession, eurozone industrial production in June output jumped 0.7% from May when it fell 0.2%.
Separate data showed that investment sentiment in Germany rose more than expected in August.
The widely watched investor confidence index calculated by the ZEW economic institute rose by 5.7 points to 42.0 points in August, beating analysts' forecasts for an increase to about 40 points this month.
The euro gained in reaction to $1.3305 from $1.3299 late in New York on Monday.
The dollar advanced to ¥97.91 from ¥96.87 on Monday.
Sterling steadied against both the European single currency and the dollar following official data that showed a slight drop in British inflation.
On the London Bullion Market, the price of gold fell to $1 336.10 an ounce from $1 341 on Monday.
In Paris, shares in Societe Generale bank fell by 1.81% after cooperative insurance company Groupama announced that it would soon sell its remaining stake in the bank, worth about €530m ($704m).
Asian stock markets closed higher on Tuesday, with Tokyo lifted by a weaker yen that in turn makes Japanese exports more competitive.
Tokyo jumped 2.57% by the close after slipping on Monday following disappointing Japanese growth figures - and ahead of fresh numbers that will give an indication of the strength of the US economy.
Figures for US retail sales, housing and industrial production due this week will give clues as to whether the Federal Reserve could begin to taper its huge $85bn a month quantitative easing programme which has buoyed international markets in recent months.
Wall Street closed flat on Monday with the Dow Jones Industrial Average slipping 0.04%.
European stock markets had closed mixed on Monday as investors kept their positions amid heightening concerns of yet another Greek bailout, dealers said.
