European markets closed higher on Tuesday as earnings momentum lifted the Stoxx Europe 600 to a 0.8% gain. Merck KGaA surged 6.8% after reporting robust life‑sciences revenue, while ASML Holding added 4.8%, propelling the technology sector and offsetting earlier weakness in financials.

Analysts linked the bounce to a broader tech rally sparked by strong results from Korean chipmakers, which buoyed investor sentiment across the continent. The lift in ASML, the Dutch lithography leader, underscored demand for advanced semiconductor equipment, a trend that has been feeding into European indices since the start of the quarter.

Merck's performance reflected renewed confidence in its pipeline of biologics and specialty chemicals, positioning the firm as a beneficiary of heightened healthcare spending. The stock's outperformance contributed significantly to the index's overall rise, highlighting how sector‑specific beats can drive broader market moves.

Overall, the day's activity demonstrates that solid corporate earnings can quickly reverse short‑term market dips, delivering tangible upside for investors with exposure to European pharma and high‑tech stocks.