(fxcue news) - European stocks closed higher on Tuesday with investors cheering the stimulus measures announced by the Chinese central bank to stimulate the world's second largest economy. The central bank said it would lower borrowing costs and inject more liquidity into the system that would free up more money for lending. Regulators also unveiled plans to support stable development of the stock market. People's Bank of China Governor Pan Gongsheng said the bank will reduce the reserve requirement ratio by 50 basis points. He announced that the rate on seven-day reverse repo will be cut by 20 basis points to 1.50 percent and the rate on one-year medium-term lending facility by 30 basis points. The bank also framed measures aims to support property market. The minimum down payment ratio for second homes will be reduced to 15 percent from 25 percent. The bank intends to cut the existing mortgage rates and bring it closer to the new mortgage rates. In European economic news, German business sentiment continued to weaken to hit its lowest level in eight months in September, suggesting that the economy is slipping into a recession, survey results from the ifo Institute revealed. The business confidence index fell more-than-expected to 85.4 in September from 86.6 in the previous month. The score was seen at 86.1. The pan European Stoxx 600 climbed 0.65%. The U.K.'s FTSE 100 gained 0.28%, Germany's DAX closed higher by 0.8%, and France's CAC 40 ended up 1.28%, while Switzerland's SMI closed up 0.7%. Among other markets in Europe, Belgium, Denmark, Finland, Greece, Iceland, Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkiye closed higher. Austria ended weak, while Norway closed flat. Shares of mining companies moved higher as copper prices hit a two-month high supported by China's measures. Shares of China-linked luxury companies also posted solid gains. In the UK market, Anglo American Plc and Antofagasta climbed 6.7% and 6.3%, respectively. Rio Tinto ended 4.5% up and Prudential gained 4.1%. Glencore advanced nearly 4% and Standard Chartered closed up 3%. IHG, Lloyds Banking Group, Natwest Group, Intertek Group, Barclays, Croda International, Scottish Mortgage, Whitbread, Weir Group and BT Group gained 1 to 2.3%. Smiths Group dropped 5.2% after its FY24 results missed estimates. Vistry Group closed nearly 2% down. Coca-Cola, Howden Joinery, Segro, Admiral Group, Unite Group, Berkeley Group Holdings, Barratt Developments and Endeavour Mining lost 1 to 1.5%. In the German market, BMW rallied more than 3.5%. Puma, Commerzbank, Fresenius Medical Care, Zalando and Porsche climbed 2 to 2.7%. Siemens Healthineers, Daimler Truck Holding, Siemens, Volkswagen, Infineon, Deutsche Post, Bayer, Mercedes-Benz, BASF and Beiersdorf gained 1 to 1.8%. HeidelbergCement, Deutsche Boerse, Vonovia and Siemens Energy closed weak. In the French market, ArcelorMittal, L'Oreal, Hermes International, LVMH, Kering and Vivendi gained 3 to 5%. STMicroElectronics, Carrefour, Accor, Thales, Societe Generale, Stellantis, Airbus Group, Safran, Pernod Ricard, Air Liquide, Essilor, Eurofins Scientific, Renault and Credit Agricole closed higher by 1 to 2%. Publicis Groupe and Dassault Systemes both ended nearly 2% down. Orange and Saint Gobain closed modestly lower.