(RTTNews) - The European markets rose for the sixth consecutive day on Tuesday, as firmer metals prices and hopes of big infrastructure spending boosted mining and steel stocks.

The benchmarks pared some of their gains following the release of disappointing U.S. manufacturing and housing data.

A report released by the National Association of Realtors in the U.S. showed that the pending home sales index fell 4.0% to 82.3 in November from a downwardly revised reading of 85.7 in October. Economists had been expecting a much more modest decease by the index of about 1.0%.

The U.S. Commerce Department said in its report that orders for manufactured goods fell by 4.6% in November following a revised 6.0% decrease in October. Economists had been expecting a decrease of about 2.6% compared to the 5.1% drop originally reported for the previous month.

U.S. President-elect Barack Obama is working feverishly in the remaining weeks before his inauguration to get a head start on his economic stimulus plan, aiming for bipartisan support in the face of a severe recession.

The package, which estimates place at $775 billion, will be largely made up of tax cuts, Obama’s advisors say. The president-elect met with both Democrat and Republican lawmakers Monday to discuss his proposed package, aiming at a swift passage following his inauguration on January 20th.

Meanwhile, Eurozone annual inflation reached the lowest level in more than 24 months in December on falling fuel prices, official data showed Tuesday. Raising chances of further rate-cuts, inflation fell below the central bank target for the first time since August 2007.

Crude for February delivery rose $0.39 to $49.20 a barrel on the New York Mercantile Exchange, by the time, the European markets closed, amid news of fighting in the Middle East, an energy dispute between Russia and Ukraine, and evidence that OPEC continues to implement a supply cut. The contract rose as high as $50.47 a barrel earlier in the session.

The FTSEurofirst 300 index of pan-European blue chips closed 1.90% higher at 889.57 points, while the narrower DJ Stoxx 50 index rose 1.52% to 2,216.62 points.

Around Europe, the U.K.’s FTSE 100 index climbed 1.29% to 4,638.92, while France’s CAC 40 index surged up 1.08% to 3,396.22 and Germany’s DAX index rose 0.85% to 5,026.31.

BHP Biliton, the world’s biggest miner, rose 5.7%, while Anglo American, the second biggest, surged up 7% and Rio Tinto, the third biggest, climbed 11.1%. Copper miner Antofagasta gained 7.9%.

ArcelorMittal, the world’s biggest steelmaker, jumped 13.6% and Thyssenkrupp, Germany’s biggest steelmaker, rose 2.7%.

Next, Britain’s second biggest clothing retailer, surged up 12.5% after the company said its full-year profit forecast remains in line with analysts’ estimates after resisting price cuts before the Christmas holiday and clearing inventory from its stores faster than last year.

Volkswagen, Europe’s biggest carmaker, jumped 11.9% after sports car maker Porsche boosted its stake in Volkswagen to more than 50%.

On the other hand, Logitech International, the world’s largest maker of computer mice, lost 9.2% after the company withdrew its fiscal 2009 financial targets and said it will cut 15% of its salaried workforce because of the deepening global recession.

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Posted in Categories: Eurozone, Releases, Stocks, UK, USA.

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