European markets bounce back European stocks rebound

European stock markets rebounded on Tuesday, driven by slightly improving data in the eurozone.

In the countries that use the single currency, economic activity edged higher in August with few signs that Brexit-linked dangers are hurting as yet, a closely-watched survey showed.

Investors were also looking to a speech on Saturday from Federal Reserve boss Janet Yellen for insights into the state of the US economy and any plans for an interest rise.

Around 1400 GMT, Frankfurt's DAX 30 stocks index was 1.1 percent higher and the Paris CAC 40 grew 0.9 percent in value.

Wall Street also moved higher, although with traders were cautious ahead of Yellen's speech at the annual global central bankers' symposium in Jackson Hole, Wyoming.

Just after the opening bell, the Dow Jones Industrial Average was up 0.5 percent at 18,618.42 while the broader S&P 500 and the tech heavy Nasdaq both added 0.4 percent.

- No Brexit woes so far -

The euro meanwhile rose against the dollar.

"The eurozone recovery continues to weather the Brexit shock rather unscathed," said Edoardo Campanella of UniCredit Research.

"All in all, today?s survey is reassuring, although uncertainty about future growth developments remain high."

Data monitoring company Markit said the eurozone economy maintained its resilience this month despite Britain's shock vote to leave the EU at the end of June -- with a strong showing from France as well as powerhouse Germany.

Markit said the preliminary August reading for its Composite Purchasing Managers Index (PMI) for the eurozone rose to a seven-month-high of 53.3 points, up from 53.2 in July.

Even so, Capital Economics worried that sagging eurozone consumer confidence would hit household spending growth based on a second-quarter slowdown in retail sales growth.

"Looking ahead, we expect household spending growth to continue to slow as the boost to consumers? real incomes from the previous large falls in energy prices fades," Capital Economics forecast.

Elsewhere on Tuesday, shares in Germany's embattled car giant Volkswagen jumped 2.7 percent to 123.3 euros after the group reached a deal with suppliers to restart deliveries -- after a row over contracts forced VW to halt production at several plants.

Outside the eurozone, London's FTSE 100 index was up 0.8 percent in mid-afternoon deals compared with the close on Monday.

The benchmark index was supported by solid share price gains for housebuilders, in particular Persimmon which rose 4.2 percent thanks to a good first-half performance.

"Housebuilders are useful barometers of forward-looking consumer sentiment," noted Neil Wilson, markets analyst at ETX Capital.

Widespread worries that the vote to exit the EU will hamper growth in Britain and beyond have eased in recent weeks thanks to better-than-expected economic data.

"Of course this might just be the calm before the storm," said Wilson, warning that if unemployment rose as expected the outlook would be rather less rosy.

In Asia on Tuesday, share prices of energy firms sank as oil prices extended the previous day's sharp losses.

- Key figures at 1400 GMT -

London - FTSE 100: UP 0.8 percent at 6,883.2 points

Frankfurt - DAX 30: UP 1.1 percent at 10,608.7

Paris - CAC 40: UP 0.9 percent at 4,431.0

EURO STOXX 50: UP 1.2 percent at 2,998.0

Tokyo - Nikkei 225: DOWN 0.6 percent at 16,497.36 (close)

Shanghai - Composite: UP 0.2 percent at 3,089.71 (close)

Hong Kong - Hang Seng: UP 1.02 points at 22,998.93 (close)

New York - DOW: DOWN 0.1 percent at 18,529.42 (close)

Euro/dollar: UP at $1.1328 from $1.1322 Monday

Dollar/yen: DOWN at 100.17 yen from 100.32 yen

Pound/dollar: UP at $1.3182 from $1.3137

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