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European Markets Close Higher On Fairly Strong Data

European markets closed higher on Tuesday, reacting to upbeat data on China industrial production and retail sales, and a survey showing a notable improvement in Germany's economic sentiment.

Investors, who also digested news on the Brexit front, were looking ahead to the monetary policy announcements from the Federal Reserve, the Bank of Japan and the Bank of England.

The Federal Reserve is scheduled to announce its policy tomorrow, while the central banks of Japan and England will be out with their policy statements on Thursday.

On the Brexit front, British MPs passed the Internal Market Bill in the House of Commons by 340 to 263 votes on Monday. The Bill will now go to the upper chamber, the House of Lords.

The pan European Stoxx 600 moved up 0.66%. The U.K.'s FTSE 100 surged up 1.32%, Germany's DAX edged up 0.18% and France's CAC 40 advanced 0.32%, while Switzerland's SMI ended 0.6% up.

Among other markets in Europe, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Russia, Spain, Sweden and Turkey closed higher.

Iceland and Poland drifted lower, while Austria, Czech Republic and Portugal ended weak.

In the U.K. market, mining stocks rose thanks to strong economic data from China.

Among the big gainers in the FTSE index, Ocado Group shares soared 10.3% after the company reported a notable surge in retail sales in the latest quarter. Hiscox surged up 17% on reports that the company expects the fallout from a court verdict over small business claims to be limited.

Flutter Entertainment gained 8.5%. CRH, Ds Smith, Ashtead Group, Rio Tinto, Taylor Wimpey, Associated British Foods, Glencore, British American Tobacco, Severn Trent and Anglo American moved up 2.5 to 3.5%.

Among the losers, Carniva, Kingfisher, TUI, Rolls-Royce Holdings, IAG and Standard Chartered ended lower by 1 to 6%.

In the French market, Kering, Peugeot, Sanofi, Hermes International, Publicis Groupe, Essilor and Technip gained 1 to 2.5%.

Carrefour, Renault, Airbus, Valeo Group, BNP Paribas and Societe Generale lost 1.6 to 3%.

In Germany, Bayer gained about 2.8%. HeidelbergCement, Fresenius and Henkel advanced 1.3 to 1.7%, while BMW, Adidas and Fresenius Medical Care posted modest gains.

Wirecard, Deutsche Bank, Continental, SAP and Infineon Technologies posted sharp to moderate losses.

In economic news, German economic confidence strengthened unexpectedly in September, survey data from the ZEW - Leibniz Centre for European Economic Research showed. The economic confidence index rose unexpectedly to 77.4 in September from 71.5 in the previous month. The reading was forecast to fall to 69.8.

The current conditions index advanced to -66.2 from -81.3 a month ago. The expected level was -72.0.

Sentiment concerning the economic development of the Eurozone increased by 9.9 points to 73.9 points in September. Likewise, the indicator for the current economic situation climbed 8.9 points to minus 80.9 points.

Data from the Office for National Statistics said UK payroll employment declined and the unemployment rate advanced 4.1% in three months to July.

Meanwhile, a report from the Federal Statistical Office showed Switzerland's producer and import prices declined in August, falling 3.5% year-on-year.

The producer price index fell 2.2% annually in August and import prices decreased 6.1%. On a monthly basis, producer and import prices fell 0.4% in August.

Data from China's National Bureau of Statistics showed Industrial production in China was up 5.6% on year in August, blowing away expectations for an increase of 5.1% and was up sharply from the 4.8% gain in July.

The bureau also said that retail sales advanced an annual 0.5% - also beating expectations for a flat reading after slipping 1.1% in the previous month.

Finally, China's unemployment rate came in at 5.6%, beating expectations for 5.7%.

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