Europe closes higher; Publicis falls

European shares closed higher on Tuesday, with investor concern over events in Ukraine waning.

The pan-European FTSEurofirst 300 provisionally closed 1.4 percent higher at 1,374 points, with nearly all sectors and bourses posting gains.

The U.K. benchmark FTSE 100 closed unofficially 1.0 percent higher. The German DAX and French CAC 40 closed up provisionally 1.2 percent and 1.6 percent respectively.


Sentiment stabilizes

A breakthrough in developments over the downed Malaysia Airlines helped to stabilize investor sentiment. Pro-Russia rebel leaders handed over two of the so-called black boxes from the plane to experts in Donetsk in Ukraine, who confirmed they were in good condition.

Meanwhile, Russia's envoy to Malaysia said in a news conference that the rebels did not have Buk missile systems and called for an investigation to be conducted by the international community.

Read MoreBackfire? How Russia sanctions could hit Europe

A meeting of European Union foreign ministers reacted to calls for further action against Russia by issuing a statement saying it remained "ready to introduce without delay a package of further significant restrictive measures."

Publicis plummets

Media stocks saw the only notable weakness, with Publicis shares closed around 5.8 percent lower. The French advertising firm announced a 16.9 percent fall in first-half net profit to 260 million euros ($352 million), and warned on its prospects for sales growth in 2014.

Read MorePublicis posts loss after failed Omnicom merger

On the flip side, ARM Holdings shares closed up around 5.7 percent after the chip designer announced a rise in second-quarter profit.

Credit Suisse reported a loss of 700 million Swiss francs ($779 million) in the second quarter, impacted by litigation costs. Shares of the Swiss lender closed down just under 1.0 percent.

Read MoreCredit Suisse posts net loss after US tax fine

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