Financials Boost Europe Shares, US Concerns Linger

The most recent U.S. data showed a sharp drop in consumer confidence this month.

Financial stocks drove European shares up on Tuesday after Standard Chartered delivered upbeat results, but gains were tempered by ongoing concern over the outlook for the U.S. economy.

The FTSEurofirst 300 index ended up 1.4 percent at 1,360.78 points. The index earlier rose as much as 1.46 percent.

The most recent U.S. data showed a sharp drop in consumer confidence this month, while producer price inflation picked up by more than expected in January, which did not augur well for future consumer spending -- the engine of U.S. economic growth.

"In general, the fundamental picture is still not that encouraging so we must place a big question mark on the durability of the current upswing," said UniCredit analyst Gerhard Schwarz.

"We have to deal with uncertainties and that is certainly a burden for the market going forward."

Standard Chartered shares were among the top percentage gainers on the broader European market, rising by more than 7 percent.