Stocks advance cautiously ahead of central bank rate moves

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European and US stocks mostly made cautious advances on Tuesday as investors awaited central bank rate decisions, while stimulus pledges by Chinese leaders dominated Asian trading.

Hong Kong stocks jumped over four percent after China's Politburo signaled it would step up support for the stuttering economy.

"The question is will they acknowledge that or maintain a hawkish position over the rest of the summer?" said Erlam.Wall Street indices advanced, with the Dow eking out a 0.1 percent increase for its 12th straight positive session. The Ifo institute's closely-watched confidence barometer, based on a survey of 9,000 companies, fell to 87.3 points in July from 88.6 points last month.

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