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European stocks rose on Tuesday, as traders digested Wall Street earnings and escalating tensions between Saudi Arabia and the West.
The pan-European Euro Stoxx 600 index ended provisionally 1.54 percent higher with all bourses pushing into positive territory. U.K. stocks were initially hit by a rise in the pound due to optimism over a Brexit deal this week. However as those prospects faded, sterling weakened and, consequentially, U.K.-listed stocks rose.
Many stocks listed in London earn much of their income overseas, so a weak sterling is viewed as good for their income.
Earnings news on Wall Street boosted shares across European markets. Goldman Sachs beat analysts' expectations for third-quarter profit and revenue, citing strength in its investment banking and investing and lending divisions.
Markets are also focused on the disappearance of a prominent journalist critical of Saudi Arabia's policies earlier this month. The disappearance has triggered international outcry against the OPEC kingpin, rattling financial markets.
Jamal Khashoggi — a U.S. resident and prominent critic of Crown Prince Mohammed bin Salman — disappeared after entering the Saudi consulate in Istanbul, Turkey on Oct. 2. Turkish authorities claim Khashoggi was murdered and his body removed. Saudi Arabia has fiercely denied that.
In individual stocks news, Meggitt shares jumped 6.35 percent after the British engineering business updated its revenue outlook for the year. Ocado shares rose 5.57 percent after the delivery firm received a favorable upgrade by investment bank Merrill Lynch. Telecom stocks were also one of the outperformers, with Enel shares rising by 3.43 percent after announcing it was increasing its stake in its Chilean subsidiary.