US Stock Markets
U.S. stocks gained Tuesday after strong economic data in the U.S., China and Germany fueled optimism over the pace of global economic growth, setting up stock indexes for their highest close in nearly half a year. The Dow Jones Industrial Average climbed 93 points, or 0.8%, to 12515 in recent trade, nearing levels the blue-chip measure hasn't reached since late July on a closing basis. The Standard & Poor's 500-stock index advanced 9 points, or 0.7%, to 1298 and the Nasdaq Composite rose 26 points, or 1%, to 2737. In the U.S., a gauge of New York manufacturing activity outstripped expectations, adding to the optimism that drove overseas markets higher. A German economic sentiment indicator rose to the highest level since July 2011 and China's economy expanded 8.9% during the fourth quarter, above expectations of 8.7%, fueling a 4.2% rise in the Shanghai Composite, the biggest since October 2009. The data overshadowed cautionary Fitch Ratings commentary on Greece's debt and Friday's spate of sovereign-ratings downgrades by Standard & Poor's. That move included revoking the triple-A credit ratings of France and Austria. Financial stocks limited the gains. Citigroup slid 6.7% and was one of the worst-performing stocks in the S&P 500 after the bank reported fourth-quarter results that missed analyst expectations, as the company struggled to offset weaker trading, underwriting and advisory revenue with more lending. M&T Bank lost 1.2%. The regional bank's fourth-quarter earnings missed analyst expectations. Wells Fargo rose 1.6%. The bank's loan portfolio and margins each grew during the fourth quarter, as did its net interest margin. Cruise-line operator Carnival's stock was one of the worst performers in the S&P 500, slumping 14% after one of the company's cruise ships capsized off the coast of Italy over the weekend. Fellow cruise ship operator Royal Caribbean dropped 3.9%. Kraft's stock gained 1.1% and touched a nine-year high. The company said it expects 2011 results to be slightly better than expected, alongside word of plans to eliminate about 1,600 jobs in North America as part of Kraft's effort to separate into two companies.

European Stock Markets
European stocks rose for a second session Tuesday, as better-than-expected growth data from China and positive economic news from Germany inspired an asset rally in Europe. The Stoxx Europe 600 index rose 0.9% to end at 253.27. Chinese fourth-quarter gross domestic product expanded 8.9% on the year, beating expectations. Meanwhile, the ZEW indicator of economic sentiment for Germany jumped 32.2 points in January to minus 21.6 points, its highest level since July. Investors also received good news from Spain, which held its first debt auction since Standard & Poor's downgraded its credit rating last week. Borrowing costs fell, with the average yield on 12-month bills at 2.049%, down from 4.05% at a similar auction Friday. Afren PLC was the top gainer in the Stoxx 600, rising 13.5% in London after the oil and gas producer announced a new oil discovery off the coast of Nigeria. Shares of Swedish hygiene-products firm SCA AB gained 9.8% after the company agreed to sell its packaging operations excluding two kraftliner mills in Sweden to DS Smith PLC for EUR1.7 billion. Shares of DS Smith rose 3.2% in London. In France, the CAC-40 index gained 1.4% to 3,269.99, as Schneider Electric SA rallied 5%. Shares of Renault SA rose 2.6% after the French car maker said that strong demand outside Europe helped drive a 3.6% increase in sales in 2011. In Germany, the DAX 30 index rallied 1.8% to 6,332.93, with car maker Daimler AG up 3.8% and rival BMW AG up 3.5%. The U.K.'s FTSE 100 index gained 0.7% to 5,693.95, buoyed by a 1.8% rise for Royal Bank of Scotland Group PLC. RBS said it will sell its aircraft-leasing unit for $7.3 billion to a consortium of Sumitomo Mitsui Financial Group. Essar Energy PLC slumped 26.3%. The India-focused energy firm said India's Supreme Court had ruled its subsidiary Essar Oil can no longer pay sales tax to the government in deferred installments.

Asian Stock Markets
Asian stock markets rallied Tuesday, with commodity-linked stocks particularly upbeat after Chinese economic growth beat estimates in the fourth quarter, belying fears of a sharper slowdown in growth. Mainland Chinese stocks were the best performers after dropping in the last four trading days. The Shanghai Composite jumped 4.2% and the Shenzhen Composite spiked 5.1%. Hong Kong's Hang Seng Index gained 3.2%, Japan's Nikkei Stock Average climbed 1.1%, South Korea's Kospi rose 1.8% and Taiwan's Taiex added 1.7%. China's GDP grew 8.9% during the last quarter of 2011 from the year-earlier period, beating economists' expectations. The gains on Chinese bourses came even as the growth data tempered expectations of an imminent reduction by Beijing in banks' reserve requirement ratios. Commodity-linked stocks were notable gainers across Asia, with Aluminum Corp. of China and Jiangxi Copper jumping by the day's limit of about 10% in Shanghai. In Hong Kong, the stocks rose 8.1% and 9.3%, respectively. The region's shipping firms also added to recent gains. Daewoo Shipbuilding & Marine Engineering climbed 5.4% in Seoul and Mitsui O.S.K. Lines rose 2% in Tokyo. China Cosco Holdings surged 10% in Shanghai as well as Hong Kong. Exporters were among notable gainers in Japan, as the euro strengthened against the yen. Pioneer rose 2.4%, while Nissan Motor and NEC each advanced 1.9%. Financial stocks also rose across the region. Hong Kong index heavyweight HSBC Holdings PLC added 3.3%, while Agricultural Bank of China climbed 4.7%. KB Financial Group rose 5.3% in Seoul.

Commodities and Futures
Base metals closed firmly higher on the London Metal Exchange Tuesday, after flagship copper hit a near-three-month peak in the wake of better-than-expected economic data from China. At the close, LME three-month copper was 1.4% higher at $8,200 a metric ton, having earlier risen as high as $8,262/ton. The red metal hasn't reached such heights since Oct. 28 last year. Thinly traded tin saw the most pronounced gains, closing at $21,720/ton, up 4.2% on the day. Crude-oil futures returned to $100 a barrel Tuesday after data showed China's economy grew faster than expected in the fourth-quarter, and comments from Saudi Arabia bid prices higher. Light sweet crude for February delivery settled $2.01 higher at $100.71 a barrel on the New York Mercantile Exchange. Gold futures settled at their highest price in a month, as slowing economic growth in China led investors to bet the country would take steps to ease its tight credit policies, spurring demand for precious metals as a store of wealth. The most actively traded gold contract, for February delivery, rose $24.80, or 1.5%, to settle at $1,655.60 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest settlement price since Dec. 13.