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Europe stocks close higher; Next shares fall 3.7%

European shares closed broadly higher on Tuesday, as investors focused on key data from the euro zone rather than the geopolitical risk posed by the protests in Hong Kong.

CPI data ahead

The pan-European FTSE Eurofirst 300 closed provisionally higher at 1,382.13 points, along with most major European bourses. Germany's DAX Index and the French CAC closed up around 0.5 and 1.3 respectively.

However the U.K.'s FTSE 100 closed down around 0.3 percent, as unrest in Hong Kong continued to weigh. The index was also hit by shares in retailer Next which ended around 3.7 percent lower after it issued a profit warning, saying that good weather had hit the number of shoppers. It comes despite official figures showing that the U.K. economy grew more than previously estimated, with this year's second-quarter growth revised up 0.1 percent.

Read MoreLive Blog: Hong Kong protesters not backing down

In the euro zone, investors were still focused on what the European Central Bank (ECB) will announce at its policy meeting on Thursday.

Thursday's data dump included inflation - a key metric used by the ECB to gauge the strength of its economy. Euro zone inflation slowed to 0.3 percent in September, largely as expected. It comes amid growing concerns that the region could be heading towards a long-term period of weak consumer price growth or even deflation - when consumer prices start to fall.

Euro zone unemployment was unchanged from last month at 11.5 percent, and also in line with expectations. Meanwhile, German retail sales in August saw their sharpest rise in more than three years.

Read MoreFourth quarter should be good for stocks

In the U.S., stocks rose on Tuesday, bouncing back from the prior day's decline, as eBay led technology shares higher and portfolio managers engaged in end-of-quarter positioning.

Symbol
Name
Price
 
Change
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FTSE
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DAX
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CAC
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IBEX 35
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RBS shares rise

In individual stocks news, London-listed Intertek's closed up around 2 percent after it announced the appointing of a new CEO.

Shares of RBS closed up 1.8 percent after it announced that it was releasing $1.3 billion from provisions that it had been holding for bad loans. The U.K. state-owned lender said that improvements in the economy, especially Ireland, had caused it to free up the cash.

HK protests continue

In Asia, equities had been mostly lower on Tuesday amid caution over developments in Hong Kong and as investors focused on data in China and Japan. Protesters remained on Hong Kong's streets on Tuesday, spreading to areas of Admiralty, Causeway Bay and Mong Kok in Kowloon, but police have been relatively absent.

Read MoreWhy Hong Kong unrest scares markets

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