Close higher amid earnings; Commerzbank slips 2%; Pandora tanks 21%
The U.K. FTSE was trading over 1 percent higher. Meanwhile, the basic resources sector as a whole had rallied 2.3 percent by mid-afternoon.
Europe's autos stocks were among the top performers, rallying almost 1.4 percent on earnings news. German auto supplier Schaeffler reported a rise in first-half net profit and increased its 2018 revenue guidance for its industrial division. Shares of Schaeffler pushed higher during Tuesday's trade to reach almost 9 percent by mid-afternoon, topping the Stoxx 600.
U.K.-based Standard Life Aberdeen was also a high performer; the insurer and asset manager's shares were up 5.5 percent. Though first-half pre-tax profit fell 12 percent, the early start of a share buyback program boosted the stock.
Looking at individual stocks, Commerzbank posted stronger-than-anticipated net profit in the second quarter on Tuesday, but the lender warned of higher costs to its corporate clients this year amid "intense competition." It was the poorest performing bank in the sector, with shares 1.6 percent lower.
Meanwhile, shares of Danish jewelry maker Pandora slumped to the bottom of the European benchmark after it slashed its guidance for 2018. The company now expects revenue to increase between 4 and 7 percent in local currency this year, having previously expected between 7 and 10 percent. Pandora's latest profit warning comes just a few months after the firm revised its mid-term targets. Shares of the Copenhagen-listed stock tanked over 21 percent during afternoon deals.
S&P 500 edges towards record high
The S&P 500 rose 0.3 percent to 2,859.20 with energy and tech outperforming. The Dow Jones Industrial Average gained 100 points as Caterpillar climbed more than 1 percent. The Nasdaq Composite advanced 0.3 percent as Facebook, Netflix and Alphabet all rose at least 1 percent.
Trade tension continues to loom over markets. China Daily, the official newspaper controlled by Beijing, said on Tuesday that President Donald Trump's claim to winning the ongoing trade war between the two due to a fall in Chinese stocks was "wishful thinking." China's two largest bourses, the Shanghai composite and the Shenzhen composite, have lost a quarter of their value since the start of the year.