European stock markets ended the session higher yesterday, underpinned by firmer prices on Wall Street as investors remain optimistic about third-quarter earnings, traders said.
After Asian stocks had risen strongly earlier, Europe tracked Wall Street higher, with London gaining 0.4% to 7,468.11 and Paris 0.3% to 5,367.41 points yesterday, while Frankfurt was shut for a German public holiday.
“UK equities are holding their ground, even trying higher, helped by more record highs on Wall Street and Asia picking up the baton overnight,” said Accendo markets analyst, Mike van Dulken. 
London’s FTSE was getting an additional lift from further weakness in sterling, attributable to disappointing construction sector data, a warning from the bank of England that UK companies may not be able to borrow from EU banks, a lack of progress on Brexit talks and continued infighting within the ruling Conservative Party, the expert said. 
“The global markets trudge on, searching for opportunities, realising Las Vegas tragedies are becoming all too commonplace,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“And as cynical as that may seem, that is the reality we’ve come to accept,” he said. 
US manufacturing activity rose to its highest level in 13 years last month, making investors bullish about the country’s upcoming third-quarter earnings season.
Traders noted that President Donald Trump’s market-friendly tax reform proposals, including a plan to cut the corporate tax rate from 35% to 20%, have also buoyed the mood of investors.
In foreign exchange yesterday, the euro recovered against the dollar following Spain-triggered losses on Monday.
Catalonia’s leader has declared victory in the weekend referendum to secede from Spain, prompting a warning from Madrid that it would do “everything within the law” to prevent the region from declaring independence.
The referendum was marred by scenes of violence, with security forces moving in on polling stations across the region to stop people from voting, in some cases using batons and firing rubber bullets to disperse crowds.