Stocks in Europe edged higher on Tuesday, with both the STOXX 50 and STOXX 600 gaining 0.3%, extending the record highs reached in the previous session. Investors continued to assess the preliminary agreement between the US and Iran aimed at ending the conflict and reopening the Strait of Hormuz. Meanwhile, the Bank of Japan raised borrowing costs as widely expected. Market attention is also turning to this week's policy decisions from the Fed and the BoE while other central banks in Europe including Switzerland, Norway and Sweden will also decide on monetary policy. Industrials and financials were among the top performers. Siemens (0.9%), Schneider Electric (1.9%), Airbus (1.1%), Rolls Royce (1.7%), Safran (1.7%), BBVA (1.2%), Intesa Sanpaolo (1.4%) were booking strong gains. UniCredit was also up more than 3% after Germany rejected its offer to buy Commerzbank. In contrast, Novartis (-0.5%), LVMH (-0.3%), L'Oreal (-0.3%), Novo Nordisk (-0.6%), TotalEnergies (-0.5%) were in the red.