European stocks closed higher on Tuesday even as the International Monetary Fund cut its 2021 growth estimates for the euro area.
The European Stoxx 600 gained 0.6%, the FTSE 100 added 0.2%, the French CAC 40 was up 0.9%, the German DAX rose 1.7% and the Swiss Market Index improved 0.4%.
The International Monetary Fund downgraded its growth estimates for the euro area in 2021 to 4.2% from 5.2%. Large countries in the region, such as France, Italy, Germany and Spain also saw their growth expectations cut for the year. The IMF also lowered its growth predictions for the UK to 4.5% from 5.9%.
The UK's retail sales plummeted 50% in January 2021, compared with a 3% decline in December 2020, as the whole country went into a lockdown on Jan. 5, the Confederation of British Industry said.
Switzerland's economic development is expected to be "negative" in Q1 due to COVID-19 restrictions, Reuters reported, citing Ronald Indergand, head of short-time economic analyses at the State Secretariat for Economic Affairs.
And, Italian Prime Minister Giuseppe Conte has resigned from office amid the ongoing COVID-19 pandemic and after facing two confidence votes last week. Conte, who hopes to form a new coalition, survived the confidence votes but lost control of the Senate after the defection of former Prime Minister Matteo Renzi's Italia Viva party.
Among individual stocks, Jersey Oil & Gas (JOG.L) rose 35% following a significant uplift in contingent resources at the Buchan oil project in the North Sea.
UBS (UBS) gained 2% after reporting Q4 net income of $0.46 per diluted share, compared with a gain of $0.19 a year earlier.