Europe Markets

Europe stocks close higher despite US earnings concerns

VIDEO0:4200:42
European market closes higher

European equities closed higher on Tuesday, bolstered by strong U.S. retail sales data for December.

Market correction?

The pan-European FTSEurofirst 300 Index provisionally closed higher, up 0.1 percent, at 1,326.01 points.

It was bolstered by data showing U.S. consumer spending , indicating the economy was gaining traction at the end of last year. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.7 percent, after a 0.2 percent increase in November.

The gauge of consumer spending was viewed as particularly important in light of Friday's dismay jobs report for December.

As in Europe, U.S. stocks rose on the news, with the rebounding from its largest decline in two months.

French economic plan

In Europe, French President Francois Hollande held his annual news conference. He set out plans to revive the weak French economy, but deflected questions about his private life following high-profile allegations that he had an affair with an actress.

In the U.K., annual inflation fell to 2.0 percent, according to the Office for National Statistics. This was the first time in four years that the consumer prices index had hit the target set by the Bank of England.

(Read More: )

Elsewhere, industrial production for November rose by 1.8 percent in the euro area on the month before, according to Eurostat..

In stocks news, shares of online retailer closed lower by around 3.1 percent, despite the company posting a bumper Christmas sales period. Shares have nearly trebled in in the last year.

said on Tuesday that its business units were in line to meet expectations for the year; shares in the infrastructure company closed higher by roughly 1.5 percent.

Shares of drug maker finished higher by around 2.5 percent after it said that it was returning to growth faster than current analyst expectations.

Follow us on Twitter: @CNBCWorld