Europe close: Stocks extend gains helped by oil and gas, miners

European stocks pushed further still into record territory on Tuesday, with miners on the rise driven by strong metal and oil prices and encouraging manufacturing data.

"US and UK investors have returned from their holiday in bullish form, picking up where they left off on Friday," IG chief market analyst Chris Beauchamp told clients.

"Growth sectors such as health care and tech stocks continue to struggle compared to the cyclical areas such as mining and banking, while in the UK commodity prices have driven the gains for the FTSE 100, thanks to the strong showing in the US and Chinese manufacturing PMIs."

Against that backdrop, the pan-European STOXX 600 index rose 0.75% to 450.1 points. Regional bourses followed suit, with Germany's DAX outperforming, up 0.95% to 15,567.36.

Spain's Ibex 35 was the laggard, adding just 9,189.7.

Front month Brent crude oil futures were 1.26% higher to $70.18 a barrel alongside on the ICE.

Investors were cheered by data showing Eurozone factory activity accelerated slightly further last month as growth in manufacturing in Italy and Spain picked up.

IHS Markit's euro area manufacturing Purchasing Managers Index rose from a reading of 62.9 at the end of April to 63.1 in May.

In equity news, miners were on the rise, with Anglo American, BHP, Rio Tinto and Glencore all up on the back of higher commodity prices.

BP, Royal Dutch Shell and Total also gained as Brent crude futures topped $70 per barrel on growing optimism over fuel demand outlook.

Shares in luxury car maker Porsche, owned by Volkswagen, gained over 10% after a report on Monday the Porsche and Piech families were prepared to take a direct stake in the brand if the sports-car unit is separately listed.

Such a move would loosen the families' grip on VW Group in favour of direct ownership of the Porsche brand, which dates back to 1931 and was founded by Ferdinand Porsche.

Speculation about a listing of the unit earlier this year included estimates of a standalone valuation of Porsche ranging from €45bn - €90bn, compared with €135bn for VW Group.

Fellow German carmaker Daimler rose after it agreed to buy 3G and 4G licences directly from Nokia, closing a long-running intellectual property dispute over royalties for key technologies.

Warsaw-listed CD Projekt SA fell after quarterly profit fell by more than half as its flagship game, “Cyberpunk 2077,” was kept off Sony’s PlayStation Store.