22.05.201820:12:00UTC+00European Markets Gain Amid Earnings as Italy Tensions Subside

European stocks rose on Tuesday, with Italy still in focus as country's president considered the candidate put forward by a eurosceptic alliance to lead their coalition government.

The pan-European Stoxx 600 climbed 0.27 percent, with most sectors and major bourses in the green.

Italy's FTSE MIB index gained 0.5 percent at 23,216.57, bouncing back after it lost 1.5 percent over the previous two trading sessions. The volatile trade in Italy came as the country's two largest anti establishment parties continued their push to form a governing coalition, which some fear could plunge Italy into a sovereign debt crisis.

Italian government bond yields came off 14-month highs on Tuesday, after several days of sharp selling amid concerns about a potential new governing coalition. The proposed link-up of anti-establishment parties had lifted Rome's 10-year yields up nearly 70 points since the start of the month.

Autos were among the best performers, rising nearly one percent after China's Finance Ministry said it would cut the import duty on passenger cars to 15 percent from current levels of 25 percent. The announcement, which came Tuesday, also said tariffs on some automotive parts would fall to 6 percent. Schaeffler and BMW were trading more than 2.5 percent higher following the news.

Telecoms stocks were also among the top performers after the chief of France's telecoms regulator told Le Monde that he was open to consolidation in the sector, re-igniting talk of telecom deals. Altice climbed to the top of the sector, gaining over 19 percent.