LONDON/MILAN: European shares rose to three-month highs on Tuesday, helped by a rally in commodities-related stocks and encouraging trading updates from French cosmetics firm L'Oreal and advertising group Publicis.
L'Oreal rose 5 percent as it said it would outperform the market in 2016 and forecast another year of sales and profit growth after first-quarter sales rose more than expected .
The pan-European FTSEurofirst 300 index rose 1.5 percent to its highest closing level since Jan. 6.
The European basic resources index rose 4.6 percent to its highest since early November, with sentiment improving after Rio Tinto reported an 11 percent rise in first quarter iron ore shipments.
There were also supportive economic signals from China, the world's top metals consumer..
"The possibility that China is stabilising is reassuring markets after a torrid 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 2.8 to 8.5 percent.
The oil and gas index also advanced, rising 1.9 percent, as oil prices rose after a strike in Kuwait cut its output almost in half.
Swedish investment firm Kinnevik rose 5.1 percent. The company proposed a SEK 5 billion ($617 million)extraordinary cash distribution to shareholders .
Advertising group Publicis gained 6.7 percent. It reported higher first-quarter revenue, helped by accounts won at the end of last year and growth at digital business Sapient .
Shares in Swiss drugmaker Roche rose 2 percent. It reiterated its full-year targets after quarterly sales growth beat analyst expectations.
Auto stocks rose 2.9 percent, making them the second biggest sectoral gainer. Parts maker Faurecia led the advance after positive guidance.
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