Europe close: Stocks gain amid China stimulus news

European shares extended gains on Tuesday after authorities in China announced targetted measures to help ease financial conditions among the country's developers.

The pan-European Stoxx 600 index was up 0.74% at 451.72 with all major bourses higher alongside.

Germany's Dax gained 0.75% to 15,790.34, alongside a 0.85% to 9,331.1, while the FTSE Mibtel added 0.68%.

The Stoxx 600 Basic Resources sub-index climbed 1.84% to 541.97, while that for Oil&Gas added 1.36% to 329.13.

Overnight, the People's Bank of China, the country's central bank, and the National Financial Regulatory Administration, said that some loans would be extended for a year, including trust loans due by the end of 2024.

The PBoC and NFRA said the goal was to aid developers in delivering homes already under construction in the face of flagging demand.

And reports indicated that further stimulus were likely in the pipeline.

In other economic news, the rise in German inflation last month was confirmed by the statistics office, breaking a run of declines.

Other data released in Europe's biggest economy showed business sentiment deteriorated more than expected in July, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.