By Emily Horton

European markets were mostly in the green on Tuesday, after Chinese government officials outlined plans to boost the country's sluggish economy.

In the U.K., politicians are preparing to vote on Prime Minister Theresa May's contentious agreement for leaving the European Union in March.

How are the markets trading?

Most of Europe's major indexes were up on Tuesday, with the Stoxx Europe 600 adding 0.2% to 348.17, after finishing down 0.5% on Monday.

France's CAC 40 added 0.2% to 4,771.90, the U.K.'s FTSE 100 was up 0.2% to 6,867.72 and Germany's DAX (DAX) gained 0.1% to 10,869.37.

Italy's FTSE MIB index was the biggest regional loser on Monday, dropping 0.4% to 19,090.60.

The euro dropped to $1.1436 from $1.147 and the British pound last bought $1.2874, slightly higher than $1.2866 late Monday.

What is driving the markets?

In China, government officials have stepped up efforts (http://www.marketwatch.com/story/china-to-ramp-up-efforts-to-support-economy-2019-01-15) to spur economic growth amid signs the country's economic slowdown is deepening. Beijing intends to improve credit availability for smaller companies, accelerate infrastructure investment and cut taxes (http://www.marketwatch.com/story/china-to-slash-taxes-keep-currency-stable-to-offset-slowdown-2019-01-14).

In the U.K, a landmark vote over May's divisive agreement for Brexit is scheduled to take place at 22:30 GMT on Tuesday. Most expect it to be rejected, with more than 100 Conservative politicians currently opposed to its terms.

In the event that the deal is voted down, May will have three days to come up with an alternative for exiting the European Union on March 29. However, EU leaders have insisted that the deal already agreed is the only one on offer.

The U.S. and European Union have sharply differing goals for coming trade negotiations on, raising the prospect for renewed trans-Atlantic tensions, The Wall Street Journal reports (https://www.wsj.com/articles/u-s-eu-set-conflicting-goals-for-looming-trade-talks-11547500468).

And Germany's economy slowed sharply last year (http://www.marketwatch.com/story/germanys-economy-slowed-sharply-in-2018-2019-01-15), shaken by softening consumer spending at home and weakness in key export markets.

What stocks are active?

Portuguese food distributor Jeronimo Martins SGPS SA (JMT.LB) added 5%.

In financial stocks, private-equity firm Partners Group Holding AG (PGHN.EB) gained 3%.

Italian banks were down on Tuesday, with Unione di Banche Italiane SpA (UBI.MI) dropping 7% and Banco BPM SpA (BAMI.MI) losing 6%.

Meanwhile, manufacturer AMS AG (AMS.EB) rose by 3%.

 

(END) Dow Jones Newswires

January 15, 2019 05:46 ET (10:46 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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