LONDON/MILAN: European shares rose to three-month highs on Tuesday, with a rally in commodities-related stocks and encouraging updates from companies such as French cosmetics firm L'Oreal and advertising group Publicis.
L'Oreal rose 4.9 percent as it pledged to outperform the market in 2016 and confirmed its ambition to achieve another year of sales and profit growth after first-quarter sales rose more than expected.
At 1435 GMT, the pan-European FTSEurofirst 300 index was up 1.4 percent at 1,374.3 points after touching 1,376.06, its highest level since Jan. 7.
The European basic resources index rose 3.5 percent to its highest since November, with sentiment improving after Rio Tinto reported an 11 percent rise in first quarter iron ore shipments.
There was also a slew of supportive economic signals from China, the world's top metals consumer. China's leaders now sound more confident that the world's second-largest economy has arrested a slide in growth to quarter-century lows.
"The possibility that China is stabilising is reassuring markets after a torrid first couple of months at the beginning of the year," said Lorne Baring, managing director at B Capital Wealth Management in Geneva.
Shares in Anglo American, Glencore and Rio Tinto rose 2 to 5.3 percent.
The oil and gas index also advanced, rising 1.6 percent, as oil prices rose after a strike in Kuwait cut its output almost in half.
Swedish investment firm Kinnevik rose 4.5 percent. The company proposed a SEK 5 billion ($616.52 million)extraordinary cash distribution to shareholders .
Advertising group Publicis gained 5.7 percent. It reported higher first-quarter revenue, helped by accounts won at the end of last year and growth at digital business Sapient .
Danone rose more than 3 percent. The world's largest yoghurt maker reported stronger than expected first-quarter sales.
Auto stocks rose 2.5 percent, making them the second biggest sectoral gainer. Parts maker Faurecia leading the advance after positive guidance.
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