European stocks flip to gains, luxury shares support

Having opened on a weaker note this Tuesday, the European indices quickly regained footing and edged slightly higher, as gains on the luxury-goods companies outweigh the banking sector shares sell-off.

Moreover, fresh selling in oil prices witnessed today weighed on the energy and utility stocks, further restricting the gains in the European equities. Further, a rally seen in the US treasury yields across the curve dampen the demand for equities as an alternative higher-yielding asset,

However, strong gains on the Asian and Wall Street stocks keep the sentiment around the European equities somewhat buoyed, as focus now shifts towards the ZEW surveys due out shortly.

Meanwhile, Germany's DAX 30 index gains +0.12% to 10,635, while the UK's FTSE 100 index trades +0.15% higher at 7,109. Among the other indices, the French CAC 40 index trades +0.24% higher at 4,508, while the pan-European Euro Stoxx 50 index increases +0.10% to 3,040 levels.