Doha: European stocks closed higher Tuesday after the German parliament approved a plan for a significant increase in spending, while investors awaited details of a phone call between the US and Russian presidents amid the possibility of a peace agreement in Ukraine. The pan-European Stoxx 600 index ended the trading session up 0.6 percent, led by the European banking sub-index, which rose 2.5 percent.

According to Qatar News Agency, the banking index also touched its highest level since February 2011, thanks to expectations of higher spending. Energy, auto, and component stocks also rose, and most sectors ended the day higher, outperforming Wall Street indices.

The broader aerospace and defense index led the way, rising 1.4 percent to a record high, while the small-cap index rose 3 percent to its highest level in more than three years. The mid-cap index also rose 1.6 percent. Siemens shares rose 1.2 percent after the company announced it would cut 5,600 jobs in its digital industries business.