European stocks climb on coat-tails of Wall Street

European stock markets rose on Tuesday, gaining traction from a particularly strong rebound on Wall Street and in Tokyo.

London equities also advanced as the pound dipped after Bank of England governor Mark Carney poured cold water on raising interest rates any time soon.

Barclays shares fell only 0.3 percent after Britain's Serious Fraud Office said it had charged the UK banking group and a former chief executive with fraud linked to funding from Qatar.

European bourses had enjoyed gains on Monday and US equities ended at records as traders also cheered a strong victory for French President Emmanuel Macron's centrist party in parliamentary elections.

"Markets in the UK and Europe have totted up a few more gains this morning, after an impressive session yesterday," said IG analyst Chris Beauchamp.

Frankfurt's DAX set a new record in morning trading.

"The size and breadth of yesterday's bounce, which took hold across European, UK and US indices, suggests that we are in the midst of another sustained move higher," added Beauchamp.

Wall Street was back in rally mode on Monday, with the Dow and S&P 500 finishing at records as Apple, Facebook and other tech shares posted strong gains.

Large tech shares reversed a spate of weakness and some ugly losses over the last two weeks to push sharply higher.

The technology sector sent Tokyo stocks spiking higher Tuesday, buoyed also as the dollar extended gains against the yen on fresh indications the Federal Reserve will lift interest rates again this year.

However, most other regional Asian markets struggled after Monday's healthy gains.

One of the key drivers of Monday's US rally were comments from influential New York Federal Reserve Bank president William Dudley, who reaffirmed the bank's plan to press on with its rate hikes and forecast of higher inflation.

He said that despite tepid price rises, he was confident that "if the labour market continues to tighten, wages will gradually pick up".

"Hitting the right chords and sounding dismissive about the recent slowdown in inflation, an unrepentantly hawkish Dudley provided the USD bulls with enough fodder," said Stephen Innes, senior trader at trading firm Oanda.

The remarks came after Fed boss Janet Yellen sounded a more hawkish tone than usual, while the central bank set out plans to wind down its asset holdings to suck cash out of the financial system.

- Takata hammered again -

Tokyo stocks ended 0.8 percent higher, with exporters key winners thanks to the weaker yen, while tech firms bounced after two weeks of sharp losses.

However, airbag maker Takata plummeted 20 percent, meaning it has lost a third of its value in just two days following reports it will file for bankruptcy protection and sell its assets to a US company.

Japan's Nikkei business daily said last week the company, with liabilities exceeding $9 billion, would make a formal decision about the filing at a board meeting this month.

Other major markets struggled, though. Hong Kong lost 0.3 percent, Sydney fell 0.8 percent and Seoul gave up 0.1 percent.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.1 percent at 7,529.11 points

Paris - CAC 40: UP 0.3 percent at 5,326.92

Frankfurt - DAX 30: UP 0.2 percent at 12,918.65

EURO STOXX 50: UP 0.2 percent at 3,587.16

Tokyo - Nikkei 225: UP 0.8 percent at 20,230.41 (close)

Hong Kong - Hang Seng: DOWN 0.3 percent at 25,843.04 (close)

Shanghai - Composite: DOWN 0.8 percent at 5,757.30 (close)

New York - Dow: UP 0.7 percent at 21,528.99 (close)

Euro/dollar: UP at $1.1157 from $1.1148 at 2100 GMT on Monday

Pound/dollar: DOWN at $1.2692 from $1.2737

Dollar/yen: UP at 111.61 yen from 111.52 yen

Oil - Brent North Sea: DOWN 83 cents at $46.08 per barrel

Oil - West Texas Intermediate: DOWN 55 cents at $43.65

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