The pan-European FTSEurofirst 300 Index provisionally closed down 0.5 percent at 1,295.44 points, after the U.S. Conference Board's consumer confidence index came in at 70.4 in November, below expectations of a rise to 72.9 from 71.2 in October.
U.S. stocks resumed mild gains on Tuesday, as better-than-expected reports on housing countered the consumer confidence data, and the market taking a more passive tone two days ahead of the Thanksgiving holiday.
Oil prices, which fell on the announcement of the Iranian nuclear disarmament deal, stabilized on Tuesday, as traders questioned how quickly a deal could translate into higher supplies.
The European Union said it could ease some sanctions on Iran as soon as December, following the interim agreement between Iran and six world powers, sealed at the weekend. Britain's Foreign Secretary William Hague also warned Israel, which opposes the deal, against undermining the agreement.
Italian politician Silvio Berlusconi launched a last-ditch attempt to overturn a conviction for tax fraud on Monday evening, citing new evidence that he said could overturn the guilty sentence.
Berlusconi faces a Senate vote on Wednesday on whether to expel him from Italian politics following the conviction he received earlier this year. On Sunday, Italian President Giorgio Napolitano rejected Berlusconi's call for a pardon.
BTG gains on varicose vein treatment
In stocks news, shares of Remy Cointreau closed down around 8.53 percent after the French alcoholic beverage company said its results had been hit by demand in China. Subdued Chinese demand also hit German fashion house Hugo Boss, and shares closed lower by 2.09 percent after it delayed its 2015 profit target.
Soft drink producer Britvic shares finished higher by 2.80 percent after it posted a rise in its full-year operating profit.
Shares of pharmaceutical company BTG closed the day higher by 13.85 percent after it won U.S. approval for its varicose vein treatment.
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