2017.11.2121:31:00UTC+00European Markets Advanced as Germany’s DAX Closed at 2-week Peak

European equities closed higher on Tuesday as investors brushed off concerns regarding the possibility of a new election in Germany.

The pan-European Stoxx 600 rallied in the afternoon, ending 0.42 percent higher with all but five sectors finishing in the green.

The U.K.'s FTSE 100 rose 0.3 percent and France's CAC 40 climbed 0.48 percent. In Germany, the threat of new elections did not impede investor bullishness and the DAX advanced 0.83 percent.

Autos led advances and was among the best performing, lifted by earnings.

Volkswagen gained three percent on a higher mid-term outlook for group profit and sales. Porsche, which is owned by Volkswagen, also climbed 2.79 percent, while other German car companies also moved higher.

Consumer staples drove the strongest gains in the FTSE, as tobacco company Imperial Brands rose 3.5 percent while investors bet on a possible bid from Japan Tobacco Inc after the Japanese firm named a new chief executive ardent on going after more foreign acquisitions.

EasyJet was at the top of the European benchmark, gaining over five percent following its full-year results. The airline highlighted an upbeat start to its new fiscal year. The news helped push other airlines higher, which includes Ryanair and International Airlines Group.