Major stock markets in Europe and Asia mostly fell on Tuesday, with investors brushing off positive data ahead of Wall Street's reopening after a long holiday weekend.

Private-sector growth has accelerated across Europe this month, according to key surveys from S&P. The agency's purchasing managers' index (PMI) data was published alongside a separate survey showing that German investor confidence rose again in February.

Taken together, the reports increased the chances that major European economies would avoid recession this year, analysts said, despite expectations that the US Federal Reserve and other central banks will continue to raise interest rates to further cool inflation.

"At a time of such uncertainty over inflation, interest rates, and the economy, these forward-looking business surveys carry extra weight," said Craig Erlam, senior markets analyst at the brokerage firm OANDA 

The eurozone PMI showed the indicator at 52.3 this month, up from 50.8 in January – a reading over 50 represents economic growth.

The eurozone PMI showed the indicator at 52.3 this month, up from 50.8 in January – a reading over 50 represents economic growth

Output in the single currency bloc turned around in January after a slump tied to supply chain disruptions, the COVID pandemic and the war in Ukraine.

Recovery was evident also in Britain, where the purchasing managers' index hit 53 in February, up from 48.5 the previous month.

The data on Tuesday boosted the pound, which was also benefitting from the prospect of more hikes to UK interest rates.

The "UK has a greater chance of avoiding a recession according to the latest health check of the economy", said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Elsewhere, oil prices traded mixed on Tuesday as worries about higher interest rates and possible recession played off against hopes that China's economic reopening from strict COVID lockdowns would fuel a surge in demand.