London (AFP) - European stock markets rose Tuesday as traders reacted to company earnings updates and positioned themselves ahead of the US Federal Reserve's latest policy meeting.
Frankfurt's DAX 30 climbed 0.48 percent to 9,022.04 points, closing above the 9,000 level for the first time.
London's benchmark FTSE 100 index rose 0.73 percent to 6,774.73 points, pulled higher by BP, while the CAC 40 in Paris added 0.62 percent to 4,278.09 points.
Madrid jumped 1.3 percent and Milan rallied 2.3 percent.
"Markets have once again reacted well to some fairly indifferent earnings reports simply because they have been slightly better than expected," said CMC Markets analyst Michael Hewson.
"The rally has also been helped by some fairly indifferent US economic data which has increased the probability that tomorrow?s Fed meeting could well see growth forecasts for the US economy nudged downwards with the likely outcome that any tapering prospects get pushed out further into the middle part of 2014," he added.
In London, shares in BP surged 5.6 percent to 477.5 pence.
?Profit has exceeded forecasts, whilst news of an increase in the (BP) dividend payment is greatly welcomed" by investors, said Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers.
Net profit slid by a third to $3.5 billion, mainly as a result of lower refining margins.
In London, the share price of Lloyds Banking Group fell 2.0 percent to 78.01 pence after the British state-rescued bank said it was putting aside a further Â£750 million ($1.2 billion, 876 million euros) to compensate customers who were wrongly sold a controversial insurance policy -- bringing the total amount to Â£8.02 billion.
In Frankfurt, Deutsche Bank said that its net profit in the third quarter was hit by "substantial litigation charges" and weaker investment banking.
After spending most of the day down, its shares closed the day up 0.9 percent at 36.21 euros.
It is being investigated over allegations that some of its employees may have been involved in rigging the Libor and Euribor interest rates.
And a number of top managers are also suspected of involvement in a tax evasion scheme in the trading of carbon emissions certificates.
The group said it had set aside 1.2 billion euros ($1.65 billion) in provisions for litigation charges in the third quarter, bringing the overall total in provisions so far to 4.1 billion euros.
In foreign exchange, the euro fell to $1.3744 from $1.3785 late in New York on Monday.
The dollar rose to 98.18 yen from 97.65 on Monday.
The British pound slid to 1.1674 euros and to $1.6048.
On the London Bullion Market, the price of gold dropped to $1,349.25 an ounce from $1,361 on Monday.
Fed set to sit tight on stimulus
While analysts widely expect the Federal Open Market Committee (FOMC) to keep its $85 billion-a-month stimulus in place, they will be poring over Wednesday's announcement for an idea as to when it will start winding down.
The Fed's bond-buying scheme floods financial markets with dollars to keep interest rates down, which in turn keeps a lid on demand for the unit.
The bank had been expected to begin tapering by the end of this year but a weak set of US data -- including soft jobs growth -- and this month's two-week government shutdown has made that highly unlikely.
Most traders expect a reduction in bond-buying to begin early next year.
The likelihood of the wind-down being put off increased on Monday, with disappointing US pending home sales numbers.
On Tuesday, a heavy schedule of economic indicators showed a 0.1 percent fall in September retail sales and a 0.1 percent drop in producer prices, indicating weak inflation.
US stocks moved higher, with the Dow Jones Industrial Average advancing 0.60 percent to 15,662.98 points in midday trading.
The broad-based S&P 500 rose 0.47 percent to 1,770.34, while the tech-rich Nasdaq Composite Index added 0.21 percent to 3,948.38.
Major earnings releases came from Apple, which bested expectations, and Pfizer, which exceeded profit forecasts but lagged on revenues.Asian stock markets ended mixed on Tuesday.