LONDON — European stock markets rose Tuesday as investors warmed to another batch of better than expected earnings and economic data from Germany, while the euro struck a two and a half month high against the dollar.

In Europe, the FTSE 100 index of leading British shares was up 46.92 points, or 0.9 percent, at 5,398.04 while Germany's DAX rose 46.65 points, or 0.8 percent, to 6,240.86. The CAC-40 in France was 49.05 points, or 1.4 percent, higher at 3,685.23.

Wall Street was poised to rise at the open after solid gains on Monday in the wake of upbeat U.S. housing data and a strong outlook statement from shipping company FedEx — Dow futures were up 63 points, or 0.6 percent, at 10,520, while the broader Standard & Poor's 500 futures rose 6.10 points, or 0.7 percent, to 1,115.60.

The recent indicators of an improving economic picture may not be of the top tier variety, but they do provide investors with a snapshot of the global economy at a time when trading volumes drop as investors head to the beach.

"In an environment lacking in obvious catalysts it would be easy to slip into the doldrums, which so often characterises the market mood during the summer weeks," said Daragh Maher, an analyst at Credit Agricole.

"Yet, the nature of the market is that it will seek something out to latch onto, and it is possible that the improvement in risk appetite that has been evident in the market for a while will capture a market devoid of fresh impulse," Maher added.

Tuesday's boon to sentiment came largely from Germany, where Deutsche Bank AG reported an unexpected 9 percent rise in second-quarter earnings as gains at its transaction banking and asset management operations helped counter a weaker investment banking performance. An upbeat survey into consumer confidence from the GfK institute also added weight to the argument that Europe's largest economy is growing faster than most in the markets have been expecting.

BP PLC was also in focus Tuesday after the oil company said it was setting aside just under 21 billion pounds ($32 billion) to pay for the oil spill in the Gulf of Mexico. BP also confirmed that chief executive Tony Hayward would be leaving his post by the start of October, to be replaced by American Bob Dudley.

BP shares were up modestly even though the costs of the environmental disaster meant the company recorded a loss of $17 billion for the second quarter, compared with a profit of $4.39 billion a year earlier. It is the first time in 18 years that the company has been in the red.

"Second quarter figures may well be the worst in BP's very long history but along with welcome confirmation of the already much publicized senior boardroom change we take the view that BP has drawn yet another line that should allow the process of moving on to begin," said Howard Wheeldon, a senior strategist at BGC Partners.

The signals of an improving European economic and corporate backdrop helped the euro push up to $1.3045, its highest level since May 10. By mid afternoon London time, the euro was 0.4 percent higher on the day at $1.3036.

Meanwhile the dollar was 0.5 percent higher at 87.31 yen.

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Earlier in Asia, Hong Kong's Hang Seng closed up 133.48 points, or 0.6 percent, to 20,973.39 but Japan's benchmark Nikkei 225 stock average was off 6.81, less than 0.1 percent, to 9,496.85.

South Korea's Kospi Index fell, albeit slightly, by less than 1 point to settle at 1,768.31 and China's Shanghai Composite Index declined 0.5 percent to 2,575.37.

Benchmark crude for September delivery was up 41 cents at $79.39 a barrel in electronic trading on the New York Mercantile Exchange.

Associated Press Writer Pamela Sampson in Bangkok contributed to this report.

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