European stocks closed firmly higher of Tuesday, extending the gains from the week amid optimism on upcoming earnings and the outlook of trade for the EU. The STOXX 50 added 0.7% to 6,000 and the STOXX 600 rose 0.6% to 613. The European Union and India concluded a free trade agreement after nearly two decades of negotiations. The deal is expected to double EU goods exports to India by 2032, as it eliminates or reduces tariffs on 96.6% of EU exports to the country. Argenx jumped 4% to lead the pharmaceutical sector while ASML advanced 3.4% ahead of its earnings results this week. In the meantime, banks extended their strong momentum with UniCredit and BBVA advancing close to 2%. Meanwhile, Puma surged 9.9% after the company sold a stake to China’s Anta Sports.