Stocks, particularly on Wall Street, got a modest lift Tuesday after better than expected U.S. retail sales figures for November ahead of the latest policy meeting of the Federal Reserve. In Europe, the FTSE 100 index of leading British shares was up 15.93 points, or 0.2 percent, at 5,876.68 while France's CAC-40 index rose 5.71 points, or 0.2 percent, to 3,898.15. Germany's DAX was around 6 points lower at 7,021. In the U.S., the Dow Jones industrial average was up 50.10 points, or 0.4 percent, at 11,478.66 soon after the open while the broader Standard & Poor's 500 index rose 4.03 points, or 0.3 percent, to 1,244.49. European markets and Wall Street futures had been trading generally lower before a U.S. government report showed retail sales in November rose by a monthly rate of 0.8 percent. That was the fifth straight monthly increase and ahead of market expectations for a 0.6 percent rise. "Clear and sustained evidence of renewed life in household spending since July indicates that the market pessimism this summer had very little lasting impact on consumer activity," said Michael Woolfolk, an analyst at Bank of New York Mellon. "The U.S. consumer has hit the holiday shopping season in full stride, and the recently struck tax deal between the White House and Congressional Republicans suggests that this momentum should carry over into 2011." U.S. retail sales figures are particularly important because they shine a light on the state of consumption in the United States, a key driver of growth. U.S. retail spending accounts for around 70 percent of the world's largest economy. How Wall Street ends up though could well hinge on what the Fed says in its statement following its meeting. Though the actual meeting is not expected to yield much, with interest rates and the quantitative easing program to expand the money supply left unchanged, the accompanying statement will be closely assessed for any change in tone. Despite weak U.S. nonfarm payrolls data for November, the U.S. economic newsflow has generally surprised to the upside since the Fed announced a $600 billion extension to policy of buying financial assets in the hope that banks start lending again. "The nuances _ mis- and over-interpreted as they often are _ of the statement will be combed through with the usual fine toothcomb," said Marc Ostwald, market strategist at Monument Securities. Most analysts think that the Fed will likely acknowledge the recent improving tone in the U.S. data and that the immediate outlook looks a little bit more rosy since President Barack Obama agreed to compromise with Republicans to extend about-to-expire tax cuts for all Americans. Though the tax compromise has increased the U.S.'s near-term growth prospects, there are worries about the impact on the public finances, notably from credit ratings agency Moody's, which warned Monday that the tax concessions could put the U.S.'s triple A status in danger. The dollar was on the retreat in the aftermath of the Moody's warning but has recovered Tuesday in the wake of the retail sales figures helped the currency rally from lows. By mid afternoon London time, the dollar was up 0.2 percent on the day at 83.60 yen while the euro was 0.1 percent weaker at $1.3379. The euro, which has been buoyed in recent days by a seeming easing in the tensions surrounding Europe's debt crisis, has been undermined slightly by a warning from Standard & Poor's that Belgium could have its debt rating downgraded in the next six months if the current political impasse in the country following inconclusive elections earlier this year is not resolved . Investors are also keeping a close watch on developments in China after figures recently showed the country's inflation rate surged to 5.1 percent in November amid higher costs for food and utilities. Financial markets are wondering if another interest rate increase is on the cards following an earlier one in October. Earlier in Asia, Hong Kong's Hang Seng climbed 0.5 percent to 23,431.19 and China's benchmark Shanghai Composite Index gained 0.1 percent to 2,927.08. Japan's Nikkei 225 stock average added 0.2 percent to 10,316.77 while Australia's S&P/ASX 200 advanced 0.2 percent to 4,766.90. Benchmark crude for January delivery was down 71 cents at $87.90 a barrel in electronic trading on the New York Mercantile Exchange.

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