The European markets rose for the third day on Tuesday, as mining stocks rallied on firmer metals prices and the Reserve Bank of Australia's unexpected decision to keep interest rates on hold.
The National Association of Realtors in the U.S. said pending home sales increased by 1.0% in December following a revised 16.4% decrease in November. Economists had been expecting pending home sales to increase by about 1.1%.
Crude for March delivery rose $2.20 to $76.63 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 0.90% higher at 1,027.18 points, while the narrower DJ Stoxx 50 index rose 0.86% to 2,512.20 points.
Around Europe, the U.K.'s FTSE 100 index rose 0.68% to 5,283.31, while France's CAC 40 index climbed 1.33% to 3,812.13 and Germany's DAX index surged up 0.98% to 5,709.66.
Mining stocks were among the top gainers. BHP Billiton, the world's biggest miner, rose 2.7%, while Anglo American, the second biggest, surged up 3.2% and Rio Tinto, the third biggest, climbed 3.4%. Copper miner Antofagasta gained 2.7%.
Among individual stocks, U.K. chip designer ARM Holdings rallied 5.5% after the company reported fourth quarter revenue that beat analysts' estimates.
Technip, Europe's second largest oilfield-services provider, climbed 6.4% after the company said it may win work on three gas storage projects in Germany.
On the other hand, BP, Europe's biggest oil company, dropped 3.8% after the company reported fourth quarter earnings that missed analysts' estimate and said it expects recovery in the major economies of the US and Europe to be "slow and gradual."
However, some other oil stocks edged higher, as crude oil prices advanced. Royal/Dutch Shell, Europe's second biggest oil company, rose 1.1% and Total, the third biggest, added 0.6%.
Novo Nordisk, the world's largest insulin maker, fell 2.6% after the company reported fourth quarter profit that came in below analysts' expectations.
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