European shares hit record high as rate of new coronavirus cases slow

European shares rose to a record high early Tuesday as a slowdown in the rate of new infections in the coronavirus outbreak provided some relief, although markets still worried over the wider global economic impact.

The pan-European STOXX 600 index rose as much as 0.7% to a record high of 427.46. The index has seen several volatile weeks after news of the outbreak, as investors weighed the economic impact and also the effects of liquidity measures put in place to soften the blow on the world's second-largest economy. Record-high overnight finishes on Wall Street, driven by robust earnings, also lent some support.

Basic resources stocks were the best performing European sector, rising 1.7% on an uptick in commodity prices. Norwegian oil and gas explorer Aker BP rose 2.4% after clocking better-than-expected fourth-quarter core earnings.