2018.05.1720:31:00UTC+00European Markets Gain Amid Solid Earnings Reports

European markets advanced on Thursday as commodities related stocks rallied and Ocado shares jumped after a new partnership agreement to enter the U.S. market.

The pan-European Stoxx 600 climbed during afternoon trade to close higher by 0.5 percent, with all major bourses and most sectors in positive territory.

The U.K.'s FTSE 100 index rose 0.7 percent to a record close of 7,787.97, as traders welcomed reports that Britain plans to stay in Europe's customs union after Brexit.

Italy's FTSE MIB Index climbed 0.3 percent to 23,801.99. Italian stocks and bonds had tumbled on Wednesday after a leaked draft of their political agenda sparked fears Italy could end up leaving the eurozone.

Retail sector was the strongest performer on the day, rallying to end almost two percent. Ocado lifted the sector, closing up more than 44 percent after the British online supermarket said it had signed an exclusive deal with U.S. grocer Kroger. Ocado's shares were up more than 50 percent earlier on in the day. The agreement allows Ocado to use Kroger's technology for grocery deliveries in the world's biggest market.

Utility stocks also did well on the day, up more than 1.4 percent amid earnings news. French waste and water group Suez posted better-than-anticipated first-quarter revenues due to an improvement in the volumes of waste treated in Europe. The Paris-listed stock ended 3.6 percent to the upside, though it had seen stronger trade earlier on in the afternoon.

Energy companies helped lift the European benchmarks as oil prices continued to rally following the Trump administration's decision to leave the Iran nuclear deal. The Stoxx Europe 600 Oil & Gas Index added 1.5 percent.