US, Europe markets rise on rosy economic data

New York - Major equities markets moved higher on both sides of the Atlantic on Tuesday as investors were cheered by economic data and energy stocks followed oil prices upward.

In New York, the blue-chip Dow Jones Industrial Average gained 0.3%, closing higher for the seventh straight day and posting its fourth consecutive record finish.

The S&P 500 rose 0.8% and the Nasdaq, favoured by Silicon Valley, was up 1.1%.

The rise followed the Commerce Department report showing retail sales up a solid 0.8% in October.

Peter Cardillo of First Standard Financial said the cheerful mood on Wall Street was also partly an extension of the post-election rally.

"It's all about the good economic news we got today and of course the continuation of the Trump rally," he told AFP, noting the data point to stronger growth in the third and fourth quarters.

Europe's main stock markets likewise pushed higher as investors reacted to a surprise dip in British inflation and shrugged off slower-than-expected German economic growth.

"Stock markets rose once more today, as hopes of a high-growth period based on substantial fiscal stimulus continued to stoke the embers of last week's US election," said analyst Joshua Mahony at online trading firm IG.

London's benchmark FTSE 100 index closed 0.6% higher, helped by a lower pound after a surprise drop in inflation.

Britain's annual inflation rate eased to 0.9% in October compared with 1.0% a month earlier, despite a Brexit-triggered slump in the pound lifting import prices.

The figure took analysts by surprise, as they had pencilled in a slight increase. But UniCredit Research economist Daniel Vernazza said the easing in inflation was "just a blip in what is a strongly upward trend".

Frankfurt's DAX 30 added 0.4% despite data showing German economic growth slowed more sharply than expected in the third quarter.

That disappointment was counterbalanced by a leap in German investor morale in November, although respondents questioned after Donald Trump's shock US election victory were less optimistic about the future.

Emerging Asian markets up

Most Asian emerging markets rose after the previous day's heavy losses but traders remained on edge over Trump's plans for global trade agreements.

While shares in developed economies have rallied and safe-haven sovereign debt prices have fallen, many trading floors in Asia have taken a hit recently over worries Trump will slap tariffs to the world's biggest economy.

After a two-day retreat on most regional bourses, there was a tentative recovery with Manila up 0.3%, Jakarta 0.5% higher and Bangkok adding 0.2%.

Tokyo, though, was marginally lower, having surged more than 8% to a nine-month high since Thursday on the back of a rally in the dollar against the yen.

"Risks are elevated, and we are expecting further increases in volatility as markets attempt to second-guess the policies that might eventually come out from the US," Michael McCarthy, chief market strategist at CMC Markets in Sydney, told Bloomberg News.

Oil prices surged on renewed hopes that OPEC can reach a deal to cap output before it holds its twice-yearly meeting this month.

Oil - West Texas Intermediate: UP $2.49 at $45.81 per barrel

Oil - Brent North Sea: UP $2.52 at $46.95.