By Polya Lesova, MarketWatch
LONDON (MarketWatch) — European stocks rose for a second consecutive session on Tuesday, as investors took in stride news that Portugal’s credit rating may be lowered by a major ratings agency.
The Stoxx Europe 600 index (ST:STOXX600 280.02, +1.64, +0.59%) gained 0.7% to 280.20 in morning trading.
In Lisbon, the PSI 20 index advanced 0.7%, even as Moody’s Investors Service placed Portugal’s government bond ratings on review for possible downgrade. The agency pointed to uncertainties about the nation’s longer-term economic vitality, and concerns about its ability to access the capital markets at a sustainable price.
Other peripheral markets also gained, with Spain’s IBEX 35 index and Italy’s FTSE MIB each rising around 0.9%.
Among Europe’s core markets, the U.K. FTSE 100 index traded up 0.7% at 5,934.18 points, led higher by shares of Barclays PLC (UK:BARC 265.90, +4.90, +1.88%) , which gained 2.1%, and Royal Bank of Scotland Group PLC (RBS 11.97, +0.06, +0.50%) (UK:RBS 39.60, +1.14, +2.96%) , which added nearly 2%.
Miners also supported the benchmark, with Fresnillo PLC (UK:FRES 1,586, +39.00, +2.52%) rallying 2.7%.
Engine maker Rolls-Royce Group PLC (UK:RR. 650.00, +13.00, +2.04%) rose 1.7%, gaining after Citigroup upgraded the firm to buy from hold, citing the firm’s recent underperformance in the wake of an engine incident.
In France, the CAC 40 index (FR:PX1 3,909, +24.09, +0.62%) moved up 0.6% to 3,907.03, as car maker Peugeot SA (FR:UG 30.47, +0.46, +1.53%) gained 0.7%.
Germany’s DAX 30 index gained 0.5% to 7,055.07, with shares of steel maker ThyssenKrupp AG (DE:TKA 32.13, +0.62, +1.97%) rallying 2.3%.
