European stocks remain sharply higher on ECB comments; Dax up 1.14%

Investing.com - European stocks were sharply higher in subdued trade on Tuesday, following comments by two European Central Bank officials, while investors eyed the release of U.S. economic reports later in the day.

During European morning trade, the EURO STOXX 50 rallied 1.36%, France’s CAC 40 surged 1.38%, while Germany’s DAX 30 jumped 1.14%.

Europeam stocks gained ground after ECB Executive Board member Peter Praet said the bank could still cut interest rates further to stimulate the economy if needed.

His remarks followed ECB Executive Board member Joerg Asmussen's comments on Monday that the central bank would stick to its expansive monetary policy for as long as necessary.

But investors still remained cautious amid expectations that the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program.

Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale surged 2.95% and 3.59%, while Germany's Deutsche Bank jumped 2.20%.

Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander rallying 1.95% and 2.96% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 3.16% and 3.20%.

Elsewhere, Basilea Pharmaceutica soared 6.05%, extending earlier gains, after the U.S. Food and Drug Administration granted seven-year market exclusivity for one of its treatments.

In London, FTSE 100 jumped 1.60%, as U.K. lenders continued to track their European counterparts higher.

Shares in Lloyds Banking rallied 1.41% and the Royal Bank of Scotland gained 1.79%, while HSBC Holdings and Barclays advanced 2.57% and 3.70% respectively.

Adding to gains, Tui Travel saw shares surge 3.65% after Morgan Stanley held the stock's rating at "equal weight".

Meanwhile, mining stocks remained mostly lower, as Rio Tinto dedged down 0.07% and Anglo American retreated 0.47%, while Rangold Resources and Eurasian Natural Resources tumbled 1.67% and 2.35%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.61% gain, S&P 500 futures signaled a 0.68% increase, while the Nasdaq 100 futures indicated a 0.75% advance.

Later in the day, the U.S. was to release private sector data on house price inflation and a report on consumer confidence.

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