European stocks stabilized near their highest levels in 5 weeks on Tuesday, with mining and luxury goods companies leading the gains after China pledged more support for its slowing economy, although mixed corporate earnings results limited the gains. The Stoxx 600 index remained largely unchanged, following a rise in Asian markets due to indications of further stimulus measures focusing on supporting domestic demand in China.
The mining sector index surged by 2.3%, topping the gainers in Europe as metal prices rose on hopes of improved demand from China. Shares of luxury goods companies like LVMH and Richemont increased by more than 1% each.
Additionally, Unilever's stock jumped by 5.1% after the consumer goods giant reported higher-than-expected quarterly sales growth, having raised prices again to offset rising costs. However, Bayer's shares dropped by 2.6% after the German pharmaceutical company lowered its full-year profit forecasts and announced a write-down of assets worth €2.5 billion.
