European shares closed sharply higher on Tuesday, registering gains for a sixth straight day, as commodities stocks tracked stronger crude and metals prices, and banks rose on hopes the credit sector jitters may ease.
Expectations that the European Central Bank and the Bank of England will cut interest rates sharply this week after Australia did so on Tuesday also lifted sentiment ahead of the U.S. Presidential vote.
The FTSEurofirst 300 index of top European shares closed 4.3 percent higher at 974.15 points, though the benchmark index is still down about 35 percent this year.
Commodities shares led the advance, as crude oil prices surged about 11 percent after industry sources said Saudi Arabia had already made substantial cuts in crude supplies, while copper jumped 6 percent and aluminium gained 2.8 percent.
BP, Royal Dutch Shell, gas producer BG Group and Tullow Oil added between 1.8 and 8.4 percent.
Banking shares also moved higher, with investors hoping that the credit markets would get a new lease of life after recent coordinated measures by the governments and expectations of further rates cuts in Europe this week.
'The European banking sector will be keenly watched, as they have been hard hit, which would suggest that any recovery in the economy will impact positively on the sector,' Chris Hossain, senior sales manager at ODL Securities, said.