By Sara Sjolin, MarketWatch

DAX slips while CAC gains

European stock markets charged higher again on Tuesday, closing at a fresh one-year high after upbeat Chinese and U.S. manufacturing data fueled optimism over economic growth in the world's two largest economies.

The Stoxx Europe 600 index climbed 0.7% to 365.71, ending at the highest level since Dec. 31, 2015.

Boost from China and U.S.: The index got a boost from separate manufacturing reports from China and the U.S. that beat analyst forecasts.

The U.S. ISM index climbed to 54.7% in December from 53.2% in November, hitting its highest level in two years ( The data helped send U.S. stocks firmly higher (, with the Dow Jones Industrial up roughly 175 points at one point. The index pared losses, however, as a rally in financials lost steam.

In China, the Caixin manufacturing purchasing managers' index rose to 51.9 in December from 50.9 in November (, avoiding contraction territory for a sixth straight month.

The upbeat data fueled a rally for the mining and energy sectors, which tend to rise on positive growth indications from Chinese because the country is a major user of natural resources.

Shares of Tullow Oil PLC (TLW.LN) rose 5.6%, while miners Boliden AB (BOL.SK) and Glencore PLC (GLEN.LN) (GLEN.LN) added 1.8% and 2.9%, respectively.

Other movers: Euronext NV (ENX.FR) jumped 7% after London Stock Exchange Group PLC (LSE.LN) said it is selling the French unit of its derivative clearing business, LCH SA, to Euronext for 510 million euros ($534.3 million) (

LSE shares dropped 0.5%.

Shares of InterContinental Hotels Group PLC (IHG) (IHG) rose 1.3% after Barclays lifted the hotel operator to overweight from equal-weight.

Economic docket: In European data news, German jobless claims dropped by 17,000 in December ( and the unemployment rate remained at a record low.

In France, inflation rose less than expected in December, coming in at 0.6% ( compared with forecasts of 0.8%.

The U.K. manufacturing purchasing managers index for December showed the sector expanded at the fastest pace in 30 months ( The index rose to 56.1 last month, the highest reading since June 2014 and significantly above the previous month's revised reading of 53.6. It also beat analyst forecasts.

Indexes: Germany's DAX 30 index slipped 0.1% to 11,584.24, while France's CAC 40 index climbed 0.4% to 4,899.33.

The U.K.'s FTSE 100 index gained 0.5% to 7,177.89, pushing further into record territory (

Read:Impressed by the Dow? This stock market has performed just as well in 2016 (

(END) Dow Jones Newswires

January 03, 2017 12:05 ET (17:05 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.