EUROPE MARKETS: FTSE Hits 2-week High As Oil Shares Rise Across Europe

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- European stocks pushed higher Tuesday, getting a lift from oil stocks and a handful of banks, but advertising heavyweight Publicis Groupe SA fell following a sales warning.

The pan-European Stoxx Europe 600 index rose 1.3% to 342.44, its first advance in four sessions. Equities extended gains after as U.S. stocks advanced near record highs in after stronger-than-expected U.S. sales of existing homes in June.

Topping gainers on the Stoxx 600 was IG Group Holdings PLC. Shares jumped 7.7% after the U.K. spread-betting and derivatives-trading-services provider said its full-year profit rose even as it reported a "subdued backdrop" late in the year.

ARM Holdings shares climbed 5.7% after the computer-chip designer said second-quarter profit rose on higher chip shipments and licensing revenue.

Overall, the U.K.'s FTSE 100 index tacked on 1% to 6,795.34, its highest close in two weeks.

Oil was the best-performing sector, led by France's Total SA , which climbed 3.1%. Italy's Eni SpA added 2.4%, and BP PLC tacked on 1.3%.

The banking sector also rose. HSBC Holdings PLC (HSBC) added 1.3%, and Banco Santander SA (SAN) advanced 2.1%. But Credit Suisse Group (CS) fell 1% after the Zurich-based bank posted a larger-than-expected second-quarter loss stemming from a U.S. legal settlement reached two months ago.

Leading Stoxx 600 decliners was Publicis Groupe SA . Shares fell 4.7% after Chief Executive Maurice Lévy said the company may not reach its full-year sales-growth target. The company also reported a decline in profit and lower-than-expected sales growth for the first half of the year.

In Paris, the CAC 40 index rose 1.5% to 4,369.52. Germany's DAX 30 index rose 1.3% to 9,734.33, marking its first gain in four sessions.

Russian stocks logged their first gain in seven sessions. Russia's blue-chips MICEX Index picked up 1.6% to close at 1,405.97. State-run airline Aeroflot climbed 3.3% and oil firm Rosneft added 0.4%.

European Union foreign ministers held a meeting in Brussels on Tuesday to discuss imposing tougher sanctions against Russia following the downing a Malaysia Airlines passenger flight last week that killed all 298 passengers and crew members.

More must-reads from MarketWatch:

Most Obamacare subsidies are illegal, appeals court rules

Brett Arends: For stocks, Dow 20,000 and then a crash?

Why a supersize iPhone is a big risk for Apple

Subscribe to WSJ: http://online.wsj.com?mod=djnwires