In deal news, Swiss agricultural chemicals giant Syngenta said it was to be acquired by ChemChina, in a deal that marks the largest attempted overseas acquisition by a Chinese firm. Syngenta said the deal, worth over $43 billion, is equivalent to 480 Swiss francs ($471.38) per share. Syngenta posted sharp gains, however pared to close up just 2.7 percent.
On the earnings front, LVMH, the world's biggest luxury group, said on Tuesday that fourth-quarter sales had recovered after the Paris attacks, as the French luxury giant saw strength in Europe, Japan and the U.S. offset weakness in China, pushing shares 4.5 percent higher by the close.
The news also pulled other luxury stocks higher, with Christian Dior being one of Europe's top performer, finishing up around 5 percent.
Swiss watchmaker Swatch was off 1.4 percent after it reported a slump in net profit, blaming strong exchange rates.