On Tuesday European stocks advanced to their highest level in more than two years after President Barack Obama agreed to extend tax cuts, offsetting concern that Europe’s sovereign-debt crisis will spread. U.S. futures and Asian shares gained.

Unilever climbed 3.7 percent after Morgan Stanley recommended the shares of the world’s second-largest consumer- goods maker. BP Plc gained 2 percent as the company was said to assess the sale of some North Sea assets. Tesco Plc advanced after the U.K.’s largest supermarket chain posted increased sales as Britons bought more of its Finest range.

The FTSEurofirst 300 index of top European shares was up, its highest since mid-November. The index is up 6 percent this year, after a 26 percent jump in 2009.

Shares in chemical companies topped the gainers list, with the sector index up 1.1 percent. Norwegian fertiliser group Yara International rose 1.5 percent after saying its prospects had improved along with demand for its nitrogen-based soil nutrient.

The euro zone debt crisis remained a focus ahead of a budget vote in Ireland. Also, the bloc’s finance ministers said on Monday they would not be taking new measures to tackle the contagion, amid worries the debt crisis could spread from Greece and Ireland, which are already receiving EU bailouts, to Portugal and possibly Spain.

Retailers featured among the top gainers, with British group Tesco, the world’s No.3 retailer, rising after it said overseas markets drove a 7.2 percent rise in third-quarter sales. Shares in construction and materials companies also advanced.

Asian stocks rose for a fifth day, led by commodity companies on speculation that a global economic recovery is stabilizing after Australia kept its main interest rate unchanged and the U.S. cut its stake in Citigroup Inc.