London's FTSE 100 notched its longest run of gains in its 33-year history on Tuesday, to close up 0.60% at a new record of 7,280, while the domestic FTSE 250 index inched toward its own previous record high.

European stocks were broadly higher also, with the DAX in Germany gaining 0.20% to be quoted at 11,587, while the CAC 40 in France added 0.05% to be quoted at 4,890.

The new record for London stocks was enabled by bullish bets on the mining sector as well as a weaker pound, which was brought about on Monday by concerns that the U.K. could be headed for a messy divorce with the EU. 

Commodity stocks were boosted by rising materials prices, which in turn drew support from pledges of further capacity cuts to come in 2017 from Hebei based regional producers of iron and steel in China.

Anglo American (NGLOY) gained more than 7% for the session while Rio Tinto  (RIO) added more than 5%. Glencore (GLCNF) stock was up nearly 4% for the session.

Iron ore futures prices were up nearly 4% during the session, following a 6% gain on Monday, as traders bet that reducing capacity in China will eventually boost prices of steel and other outputs.

That said, Chinese inflation numbers for December also played a role in price action for the session.

The consumer price index was weaker than expected due to lower food prices during the period, falling back to 2.1% from 2.3% in November, although the November reading of 2.3% is effectively the two-year high of consumer prices in China.

Steady upward pressure on inflation has helped to underpin a consensus that the world's second-largest economy remained on a steady footing going into the close of the year.

Retailers such as Tesco (TSCDY) and WM Morrison (MRWSY) also rose strongly on Tuesday as the first numbers from the Christmas sales season hit the market.

Industry monitor Kantar Worldpanel said that total sales for the industry grew by 1.8% and the market returned to price inflation during the 12 weeks to the end of December, for the first time since mid-2014.

Tesco saw total sales rise, although its market share slipped by 10 basis points when compared with one year ago, while WM Morrison experienced its first period of sales growth for more than 18 months. Both firms continue to battle against an insurgency from German discount firms Lidl and Aldi.

In Germany, auto parts firm Continental (CTTAY) was the biggest gainer on the DAX, up nearly 4% as investors looked past Monday's disappointing guidance on margins for 2017 and bought back into the stock.

Other gainers included steel and industrial giant Thyssenkrupp (TYEKF) , which was also a beneficiary of reports the Chinese province of Hebei will double the rate of capacity cuts during the coming year to reduce oversupply in the global market for steel and iron.

In keeping with the same theme, ArcelorMittal (MT - Get Report) was the top riser on the CAC in France, up 4.2%.

Auto stocks were broadly higher during Tuesday's session across Europe as investors responded to positive sales numbers for 2016 and details of new product launches unveiled at the Detroit Auto Show.

Accordingly, French carmakers Renault (RNSDF) and Peugeot (PEUGF) trailed ArcelorMittal closely on the CAC, rising by around 3% and 1%, respectively. Renault was a particular beneficiary of the above trend with the unveiling of Nissan's (NSANY) QX50 SUV, a Renault-Nissan Alliance project, attracting a fair amount of press coverage in Detroit.