Europe close: Stoxx 600 and DAX hit new record highs

(Sharecast News) - European shares closed higher on Tuesday despite losses in Paris and Milan, with the Stoxx 600 index hitting another all-time high. The pan-European benchmark finished the session up 0.4% at 531.60, edge past an earlier record set last week, having now gained 5.4% over the month of January alone.

Frankfurt's DAX index was also at a record high, rising 0.7% to 21,430.58, Madrid's Ibex 35 jumped 1.3% while London's FTSE 100 gained 0.4%, helping to offset losses of 0.1% on the CAC and FTSE MIB.

In macro news, consumer confidence in France improved more than expected. According to the National Institute of Statistics and Economic Studies (otherwise known as INSEE), the household confidence index rose to 92 this month, up three points from 89 in December and ahead of the 90 reading predicted by analysts. This was the highest reading since October, but below the average print of 100 since January 1987.

The market's focus will now turn to the Federal Reserve, which concludes its first policy meeting of the year on Wednesday evening, though no change is expected on interest rates.

On Thursday, the European Central Bank is tipped to cut all key rates by 25 basis points, taking its deposit rate to 2.75%, its main refinancing rate to 2.9% and the marginal lending rate to 3.15%.

Market movers

Italian investment bank Mediobanca fell 4% after rejecting Friday's €13.3bn takeover bid from state-backed Banca Monte dei Paschi, saying the deal would be "strongly destructive of value".

Germany's SAP edged 0.5% higher after reporting a better-than expected 25% increase in annual adjusted operating profit.

Also in Frankfurt, life sciences company Sartorius surged 8% after impressing with fourth-quarter earnings as well as strong bioprocess solutions orders.

Siemens Energy also rose 8% as the offshore wind turbine maker reported a preliminary first-quarter revenue above market expectations.

ING finished flat on the news that the Dutch bank has agreed to sell its Russian business, bringing its presence in the country to an end to nearly three years after the invasion of Ukraine.