LONDON: European shares rose sharply on Tuesday, helped by encouraging updates from companies such as Germany's United Internet and Dutch-based Randstad , the world's second-biggest staffing company.
Sentiment was also improved by the latest comments from an executive board member of the European Central Bank, and by Greece's preliminary deal with its international lenders on home foreclosures, analysts said.
Randstad shares rose 7 percent, the top gainer in the pan-European FTSEurofirst 300 index, after the company said sales had accelerated since it reported third-quarter results and that it expected higher margins in 2016.
United Internet gained 2.4 percent after reporting a rise in third-quarter core profit and revenues as the number of subscribers continued to rise.
The FTSEurofirst 300 index was up 1.8 percent after closing 0.2 percent higher in the previous session. French shares were up 2.2 percent, after falling 0.1 percent on Monday following Friday's Islamist militant attacks in Paris that killed at least 129 people.
"European equity markets are catching the tailwind from the U.S. after strong close yesterday. Investors are showing resilience to the recent attacks in Paris despite mounting worries over security in Europe," Lorne Baring, managing director of B Capital Wealth Management, said.
"Overall there is a macro tailwind for European equities. The monetary policy of the ECB will continue to weaken the euro versus other major currencies. We are continuing to recommend an overweight in European equities."
Expectations of further ECB stimulus rose after Peter Praet, the ECB's chief economist and a member of its executive board, told Bloomberg that an environment of weak price pressures in the medium term remained and the governing council will discuss whether there is a case for further action in the context of heightened uncertainty.
"Praet's latest comments reinforce the view that the central bank is soon going to provide some further stimulus measures to boost the region's economy. Sentiment is further improved by a weaker euro, which is going to help European exporters," Koen De Leus, senior economist at KBC in Brussels, said.
"Greece's preliminary deal with its international lenders on home foreclosures reform is also good news for the market. It ensures no unsettling news for the financial markets from the Greek side in the short term."
Greece's ATG share index surged 2.3 percent after Athens reached a deal with its lenders, easing an impasse in its bailout programme to unlock fresh loans.
European stocks dealing in the defence and military sectors also rose, as France launched new strikes on targets in Syria. BAE Systems rose 1.5 percent, Airbus advanced 2.8 percent and Meggitt progressed 2.5 percent.
Shares in easyJet, however, fell 3.5 percent despite the company saying it was confident of future growth. The airline ordered 36 additional Airbus A320 aircraft after reporting an 18 percent jump in annual profit helped by strong demand for summer holiday travel.
"From a broader perspective, airport taxes and higher costs remain a threat, whilst the shocking events of the weekend are a stark reminder of the exogenous factors with which the airline industry has to deal," Richard Hunter, analyst at Hargreaves Lansdown, said.
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