The pan-European Stoxx 600 advanced 0.2% by 10:43 a.m. in London (5:43 a.m. ET). In the first hours of trade, the index hit a fresh high of 588.42 points just days after surpassing its previous record.

LONDON — European markets were higher on Tuesday, paring the previous session's losses.

The benchmark has risen 14% higher this year and, with a week to go, it looks on track for its third consecutive year of gains.

Investors will be watching Novo Nordisk stock after the Wegovy-maker gained FDA approval for the first-ever GLP-1 pill, giving the Danish firm a head start over U.S. rival Eli Lilly . Novo Nordisk's share price was last seen 7.5% higher.

Fellow European health name Zealand Pharma also saw its shares rise by 2.3%.

Shares in French biotech Abivax extended gains into a second day, advancing 1.4%, paring earlier gains. The company — one of Europe's best-performing stocks this year — popped 15.4% on Monday.

Danish renewables giant Orsted shed 13% on Monday after the U.S. Department of the Interior said it was suspending leases on five offshore wind projects already under construction. Orsted successfully challenged the Trump administration's stop-order on the nearly-completed Revolution Wind project off Rhode Island when it was halted earlier this year. Its shares moved 0.9% lower in morning trade.

Elsewhere, Greenland's Prime Minister Jens-Frederik Nielsen brushed off President Donald Trump's appointment of a "special envoy" to the Danish territory. Trump has made multiple entreaties to acquire Greenland, which is particularly luring for its rare earths depository.

Final GDP data from Spain is expected on Tuesday. Provisional data released last month showed a year-on-year growth of 2.8%.

Asia-Pacific markets opened mostly higher Tuesday, after the AI trade lifted major Wall Street indexes overnight. Stateside, stock futures traded near the flatline Monday night after a strong start to a shortened trading week.

— CNBC's Elsa Ohlen and Lim Hui Jie contributed to this report.