Most European markets open higher on Tuesday
Most European markets open higher on Tuesday (Reuters).

Most European markets opened higher on Tuesday after positive manufacturing activity data from Europe and China, raised hopes of a quicker global economic recovery.

The Stoxx Europe 600 index opened 0.1% higher to 303.19.

Britain's FTSE 100 opened 0.2% higher.

Germany's DAX 30 index opened 0.3% higher.

France's CAC 40 index opened flat

Italy's FTSE MIB was up 0.02% in early trade.

Spain's IBEX 35 was up 0.16% in early trade.

The eurozone's manufacturing sector continued to expand in August as member countries such as Germany, the Netherlands, Italy, Austria and Ireland showed improved growth, largely indicating a broad-based recovery.

Earlier, results from a private survey showed that Britain's manufacturing sector saw output and new orders rise at their fastest rates in almost 20 years during August, in another sign that the ailing economy is finally on the mend. The Markit Purchasing Managers Index (PMI) for overall activity in August rose to 57.2, up from July's 54.8 and the highest reading in two-and-a-half years. Any reading above the neutral 50 mark represents growth.

Elsewhere, China's manufacturing sector recovered in August as it posted an expansion in activity following three months of deterioration, thanks to the stimulus measures announced by the government.

Market participants in Europe will be tracking construction purchasing managers' index (PMI) data coming in from the UK, alongside August unemployment data coming in from Spain today.

In company news, software giant Microsoft has agreed to acquire Finland-based Nokia's mobile phone business for €5.44bn (£4.61bn , $7.17bn), the two firms said on Tuesday. The transaction is expected to be completed by April 2014, subject to approval by Nokia's shareholders.

Earlier, Verizon Communications confirmed a $130bn deal with UK mobile phone giant Vodafone to acquire its 45% stake in the pair's profitable US joint venture, Verizon Wireless. The deal, which is the third largest in history, was unanimously supported by both firms' boards. A final hurdle, but likely a low one, will be the approval of both firms' shareholders. Regulators will also need to rubber stamp the deal.

In other news, Italy's budget deficit widened considerably in August. The country's state-sector budget deficit was €9.2bn in August, much higher than the €5.9bn deficit a year ago. The Italian government recently wrote off an unpopular property tax and this has reduced revenues by €4bn overnight.

In Asia and the US

In Asia, the Japanese Nikkei finished 2.99% higher on Tuesday. Australia's S&P/ASX closed 0.16% higher while South Korea's Kospi ended 0.46% higher.

Earlier in Asia, markets traded higher on positive factory activity data from Europe and China.

In Australia, the country's central bank left its cash rate at a record low of 2.5% on Tuesday.

"The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target," Reserve Bank of Australia Governor Glenn Stevens said in a statement.

Australians will elect a new government later this week.

Asian markets took their cues from Europe as financial markets in the US were closed on Monday for the Labour Day holiday.