Energy companies push Europe higher

On Tuesday stocks in Europe advanced as energy companies gained after a bullish outlook from one of the sector’s bellwethers. The dollar steadied and Treasuries edged lower ahead of a Federal Reserve confirmation hearing and debate on U.S. tax reform.

Oil and gas stocks led gains in the Stoxx Europe 600 Index after Royal Dutch Shell Plc restored a full cash dividend as it emerges from the crudeoil slump. Miners lagged as metal prices continued to slide. In Asia earlier, Chinese shares traded in Hong Kong fell amid concerns the country’s regulators will limit the flow of mainland funds into the city’s stocks, while mainland equities rose. The yen reversed gains after a rally partly fueled by a Kyodo News report that Japan detected radio signals suggesting North Korea is preparing for a missile launch.

On the commodities front, copper and nickel led industrial metals lower as weakening Chinese macro data and slowing home sales increase concern about the outlook for demand in the world’s top user. West Texas oil extended its decline from the highest level in more than two years before OPEC and its allies meet this week.

Elsewhere, sterling drifted and Ireland’s bonds rose even as a controversy engulfing the Irish government and threatening Brexit talks escalated. The Bank of England revealed that all U.K. lenders passed stress tests for the first time since it started the annual exercise.

The Stoxx Europe 600 Index jumped 0.4 percent as of 10:44 a.m. London time. The U.K.’s FTSE 100 Index gained 0.6 percent to the highest in more than two weeks. Germany’s DAX Index jumped 0.3 percent. Japan’s Nikkei 225 Stock Average dipped less than 0.05 percent to the lowest in a week. The MSCI Asia Pacific Index fell 0.1 percent to the lowest in a week. The MSCI Emerging Market Index climbed 0.2 percent.