European shares rise after US, Asian markets rally

European shares followed US and Asian markets higher on Tuesday as investors awaited a long-anticipated US tax reform bill which looks almost certain to pass this week.

The pan-European STOXX 600 traded 0.2 per cent higher at a new five-week high, maintaining Monday’s momentum though gains were more muted, with euro zone stocks and blue-chips up 0.1 per cent.

Britain’s FTSE 100 gained 0.3 per cent, boosted by its weighting towards defensive, high dividend-paying stocks which investors favour when they sense uncertainty.

Shares in Anglo-South African financial services group Old Mutual gained 4.6 per cent.

Intrum Justitia fell 6.3 per cent after saying its CFO would leave the company, reports Reuters. 

Telcos have been among the worst performing sectors this year, down 2.5 per cent from January.

With fewer big corporate stories to drive trading on Tuesday, investors will hone in on Germany’s Ifo business survey data, out at 0900 GMT.