European stocks kicked off the first trading day of the month on a solid note Tuesday, with healthy corporate earnings, upbeat British manufacturing data and news that Greece has reached a deal with its international lenders helping underpin investor sentiment.
However, gains remained muted ahead of the Federal Reserve's two-day meeting starting later today, the all-important U.S. jobs report due on Friday and the final May 7 presidential runoff vote.
British manufacturing activity expanded at the sharpest pace in three years in April as growth of output, new orders and employment all gathered pace, driven higher by the continued strength of the domestic market, a survey showed.
The Markit/CIPS purchasing managers' index for the manufacturing sector climbed to 57.3 in April from March's 4-month low of 54.2. Economists had expected the index to fall to 54.0.
Eurozone manufacturing activity also expanded at the fastest pace in six years in April, but the final score was slightly below the expected level.
Elsewhere, figures from Destatis showed that German jobless rate held steady at 3.9 percent in March in adjusted terms.
The pan-European Stoxx Europe 600 index was up 0.3 percent at 387.66 in late opening deals while the German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were up between 0.2 percent and 0.4 percent.
Banks traded mostly higher after U.S. President Donald Trump told Bloomberg News he's considering breaking up big Wall Street banks and U.S. Treasury Secretary Steven Mnuchin said the White House is making steady progress on its tax reform plan.
Commerzbank, Deutsche Bank, BNP Paribas, Credit Agricole and Societe Generale were up between 0.3 percent and 1 percent.
Aberdeen Asset Management shares jumped 3.5 percent in London. The fund manager reported much narrowed business outflows during the second quarter of 2017 as emerging markets recovered.
Online grocer Ocado soared 7 percent on reports of a delivery tie-up with supermarket M&S.
BP Plc advanced over 1 percent after a rebound in crude prices and higher production helped the energy giant report a sharp increase in first-quarter profit.
Novartis rose about 1 percent on winning a new drug approval from the U.S. health regulator.
Swedish polymer producer Hexpol tumbled 4 percent on a brokerage downgrade.
Bayer fell nearly 3 percent after West Virginia State University accused Dow Chemical and Bayer of polluting the groundwater under its campus with three likely carcinogens.
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