European stocks inched higher on Tuesday as investors held out for more U.S. stimulus to limit the economic damage of the COVID-19 pandemic, brushing aside the latest batch of underwhelming quarterly earnings reports from luxury goods makers.

The pan-European STOXX 600 (STOXX) rose 0.3% by 0719 GMT, while the German DAX (GDAXI) gained 0.5% and London's FTSE 100 (FTSE) was up 0.6%.

After worries of a resurgence in coronavirus cases knocked risk sentiment on Monday, investors waited for the conclusion of a U.S. Federal Reserve meeting and talks over another round of fiscal stimulus for the U.S. economy.

Luxury stocks took a hit after LVMH (PA:LVMH) slid 2.8% as store closures sparked by the COVID-19 pandemic tore a hole into the Louis Vuitton owner's second-quarter sales.

Gucci owner Kering (PA:PRTP) and France's Hermes (PA:HRMS) slipped, while Moncler (MI:MONC), which makes luxury puffer jackets, slid 4% after reporting a first-half operating loss for the first time in its history.