European Stocks Higher as Commodity Rally Continues

European stocks held gains into the close on Tuesday, as U.S. equities continued to breach all-time highs, amid surging commodity prices and bullish economic sentiment.

Aluminum was up by more than 2% for the session, copper gained 1%, zinc rose by nearly 1% and nickel was broadly flat. Oil prices also broadly held onto their recent gains.

Price action in materials markets pushed the U.K.'s FTSE 100 out in front of other regional benchmarks, with the index scoring a 1% advance on the session, given its heavy weighting toward commodities.

London's FTSE 250 index was also buoyant, rising by around 1%, after stronger-than-expected results pushed a series of mid-market stocks to double-digit gains.

In France, the CAC 40 was up by 0.3%, and in Germany, the DAX was up by around 0.5% for the session.

In currency markets, both the pound and euro were weaker against the dollar as investors took profits following Monday's gains. The pound sterling was down to 1.2440 and the euro was down to 1.0616.

Eurozone bond markets were also active in a session where flows were dominated by public comments from European Central Bank rate-setters which investors determined to signal the bank's intention to extend its €1.5 trillion program of quantitative easing past its March 2017 deadline.

The prospect for more buying drove benchmark 10-year bund prices higher, pushing yields to 0.24% and snapping a two-week string of daily increases.

Yields were also modestly lower in the U.K., with the 10-year Gilt down by about 30 basis points to 1.25%.

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