The European markets closed higher Tuesday as tech, bank, and mining stocks rallied, while investors look ahead to the European Central Bank's interest rate decision on Thursday. The ECB Watch Tool forecasts an 8% chance the central bank will boost rates to 2.50% from 2.25%.

The Stoxx Europe rose 0.5%, Germany's DAX gained 0.6%, the FTSE 100 increased 0.6%, France's CAC edged 0.1% higher, and the Swiss Market Index ended the session up 0.2%.

In corporate news, Novartis reported Q2 core earnings Tuesday of $2.41 per share, down from $2.42 a year earlier. Analysts polled by FactSet expected $2.21.

Net sales for the quarter ended June 30 were $14.41 billion, compared with $14.05 billion a year earlier. Analysts surveyed by FactSet expected $14.15 billion.

Shares of the Swiss pharmaceutical company gained 2.1% in Zurich.

Novo Nordisk said Tuesday it filed a lawsuit against Eli Lilly, alleging the drugmaker's advertising for Zepbound and Mounjaro violates federal and state false advertising and unfair competition laws.

Novo Nordisk said Lilly's ads compare Zepbound and Mounjaro with lower doses of Wegovy and Ozempic while omitting information about higher-dose versions of the semaglutide drugs, making the ads misleading. The company said it is seeking a permanent injunction to stop the advertising and require Lilly to run corrective ads.

Shares of the Danish pharmaceutical company fell 1.2% in Copenhagen.

TotalEnergies and Eni are among the international partners Abu Dhabi National Oil, or ADNOC, will work with to develop the Umm Shaif Gas Cap in Abu Dhabi, as it made a $6.2 billion final investment decision on the project, ADNOC said Tuesday.

ADNOC expects the investment decision to unlock more than 600 million standard cubic feet per day of natural gas and associated liquids, with production targeted for 2030.

Shares of TotalEnergies gained 2% in Paris, while Eni shares rose 1.1% in Milan.

Diageo Chair Sir John Manzoni is planning a board shake-up to add drinks industry expertise as Chief Executive Dave Lewis leads the company's turnaround, the Financial Times reported Tuesday, citing people familiar with the matter.

Manzoni is seeking directors with experience in the drinks industry to strengthen board oversight as Diageo navigates weak spirits demand, the report said.

A Diageo spokesperson said the board "represents relevant consumer industry experience," adding that Manzoni "is supportive of the current board, but like any chair, he is always looking to strengthen the appropriate mix of backgrounds and skill sets, in order to drive returns for shareholders."

Shares of the alcoholic beverage company were off 0.3% in London.