In the U.S., stocks fluctuated on Tuesday, with the S&P 500 hitting another intraday record high, as a gauge of manufacturing jumped to its highest level in three years.
Shares in Anglo American rose 3.2 percent, before paring some gains to close up around 2.5 percent, after the company's CEO said in an interview that it was open to takeover offers. Speaking to The Wall Street Journal, Mark Cutifani, said he wasn't against a takeover if it was compelling enough.
ECB stimulus eyed
In Europe, data for the euro zone showed that producer prices fell 0.1 percent on the month in July, as expected. Year on year, prices fell 1.1 percent, the European Union statistics agency said.
Read MoreAs ECB looms, we're already in the red zone
The figures come as investors in Europe weigh up the possibility that the European Central Bank (ECB) will announce fresh stimulus measures this week at its policy meeting on Thursday.
"The latest drop in headline inflation, weakening sentiment indicators and economic prospects and, above all, (ECB President) Mario Draghi's speech at Jackson Hole have once again fueled market expectations of more ECB fireworks at this week's meeting," ING's Carsten Brzeski said in a note.
He argued that fully-fledged quantitative easing was "the only tool left", but it "remained highly unlikely" that it would be announced this week.
Read MoreWith ECB in focus, euro downtrend looks strong
Meanwhile, construction data for the U.K. showed a better-than-expected rise, with the index hitting its strongest in seven months in August.