Europe Markets

Europe shares close slightly down; Germany data weighs

European market closes mixed

European shares closed mixed on Tuesday, struggling after the release of worse-than-expected data for Germany.

The U.K. FTSE 100 closed provisionally down around 1 percent. Meanwhile, France's CAC 40 Index and Germany's DAX Index Index closed provisionally up around 0.2 percent and 0.3 percent respectively.

Germany sees 'lull'

The pan-European FTSEurofirst 300 Index closed provisionally down around 0.1 percent at 1,387.49, with most major European bourses mixed.

Markets had started the day on positive footing, but turned lower after a widely watched data release from Munich-based think tank Ifo.

Its business climate index for Germany in June showed a fall to 110.4 points from 111.2 points last month. The group said the current business situation had deteriorated and companies were less optimistic looking ahead.

Elsewhere, Bank of England Governor Mark Carney was quizzed by lawmakers, and struck a more dovish tone than previously.

Carney said the slack in Britain's labor market needed to be absorbed before interest rates were raised, marking a change in tone from earlier this month, when he said rates could rise sooner than markets expected.

Read MoreBank of England's Carney sends sterling lower

Syngenta shares surge

In individual stocks news, agrochemicals firm Syngenta was the biggest gainer on the Stoxx 600, after media reports that the U.S. company Monsanto was considering a takeover approach. Its shares closed up around up 6.2 percent.

A company spokesperson told CNBC that Syngenta would not be commenting on the report, adding that "rumors" are commonplace in the financial markets -- particularly at present.

Shares in geoscience company CGG closed up around 2.9 percent, after Societe Generale upgraded its outlook on the firm to a "buy" from a "hold".

German carmaker BMW also received an upgrade, with UBS raising its price target and giving it a "buy" rating; shares closed up around 2.9 percent higher.

Shares of oilfield services company Petrofac, meanwhile, closed down around 1.7 percent, after the U.K.-listed company reported a record backlog in orders. Shares had opened moderately higher.

Iraq, Ukraine in focus

Asian stocks were mostly higher on Tuesday following a mixed morning session, but gains were capped as traders continued to monitor developments in Iraq and Ukraine.

In the U.S., stocks opened mainly lower on Tuesday, as investors tracked economic reports on the housing market.

The Case-Shiller index of home prices rose 10.8 percent in April from the year earlier, and 1.1 percent from the prior month, just above estimates of a 1.0 percent rise.The data came a day after an upbeat report on existing-home sales.

Read MoreKerry vows 'intense and sustained' support for Iraq

U.S. Secretary of State John Kerry was in Iraqi Kurdistan on Tuesday to urge its leaders not to withdraw from the political process in Baghdad.

Read MoreUkraine separatists agree to temporary ceasefire

While in Ukraine, separatist leaders agreed to a ceasefire with government forces until June 27.

Russian stocks managed to hit a five-month high on Tuesday after President Vladimir Putin asked the country's parliament to revoke Russia's right to send troops to Ukraine, according to a report by Reuters.

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