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Europe ends sharply higher following miners rally; earnings in focus

European stocks posted solid gains by Tuesday's close, as investors cheered on the sharp uptick in mining stocks, while digesting the latest batch of earnings reports.

The pan-European STOXX 600 ended 1.5 percent higher provisionally. All sectors finished higher, with banks, travel and basic resources all closing above 2 percent.

The FTSE 100 finished up 0.76 percent, while the French CAC 40 jumped 1.32 percent and Germany's DAX ended 1.22 percent up.

All eyes on commodities

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FTSE
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IBEX 35
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Commodities provided a helping hand in European trade on Tuesday, with basic resources outperforming the broader market, closing up 2.79 percent as a sector. Glencore, Anglo American and BHP Billiton all posted gains of 1.5 percent or more by the close, boosted by slight weakness in the dollar and a solid uptick in metal prices.

Elsewhere, crude prices were initially higher during trade, but came under pressure in the afternoon, as the U.S. dollar came off its session lows. At the market close, Brent traded at $51.37, while U.S. WTIhovered at $49.93.

Investor caution continues to mount however, as election day approaches in the U.S., and investors debate over when the U.S. central bank could raise interest rates. On Monday, the Federal Reserve Vice Chairman Stanley Fischer said that the U.S. central bank was "very close" to meeting its employment and inflation goals.

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On Tuesday, Wall Street posted strong gains in its early trade, following a strong set of earnings reports. Meanwhile in Asia, markets closed mostly higher.

On the data front, U.K. inflation data for September showed a 1 percent increase year-on-year, ahead of consensus forecasts for an upward move of 0.9 percent.

Sticking with the U.K., the British pound jumped in morning London trade, after a U.K. government lawyer said parliament would "very likely" have to ratify any deal to take the U.K. out of the EU; Reuters reported. At the close, sterling was up some 1 percent against the U.S. dollar, standing at $1.2316.

Burberry shares lose some sparkle

Burberry shares tumbled to the bottom of Europe's benchmarks, ending 7.2 percent down, as the firm warned of a challenging external environment, despite reporting a rise in second-quarter retail sales.

Meanwhile, after a poor earnings report on Monday, Pearson fell over 2 percent on Tuesday after several brokers cut their price targets on the stock.

Ryanair cut its full-year profit forecast by 5 percent due to the plunge in the value of sterling, sending shares in the budget airline lower in early trade. But shares reversed losses to close almost 5 percent higher after it announced that it hoped to boost market share soon by selling more tickets, Reuters reported. EasyJet closed higher too, up 5.1 percent.

British housebuilder Bellway reported a 40 percent rise in pretax profit for its fiscal 2016 year, helping shares climb 6 percent. The news helped lift other U.K. property stocks, including Persimmon, Barratt Development and Bovis Homes.

However, London-listed Domino's Pizza outperformed these stocks, closing up 6.45 percent, following a strong earnings report from its U.S. listed stock.

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