The pan-European Euro Stoxx 600 Index closed slightly higher after the latest release of the German ZEW index for October - a gauge of economic sentiment in the country - showed a fall to minus 3.6 points versus a figure of 6.9 in September.
"The continuation and magnitude of the decline, which went beyond our expectations, is reason for concern. If uncertainty is the source for the decline, then the level of uncertainty is very similar to the one observed during the peak of the euro zone crisis," Evelyn Herrmann, an economist at BNP Paribas said in a note after the release.
Data for euro zone industrial production also showed a fall. The figure for August sunk 1.8 percent from the month before and was worse than expected in a poll of economists by Reuters. Capital goods output was the major laggard within the new figures and showed their biggest fall since January 2009.
Read MoreGerman investormorale tumbles as contraction looms
Meanwhile, inflation readings were also released on Tuesday morning. French consumer prices rose 0.4 percent from the year before in September, meeting estimates, and Spanish inflation figures slipped 0.2 percent.
In the U.K., yearly inflation fell to 1.2 percent in September and was below a forecast of 1.4 percent in a Reuters poll. Earlier in the day, the British Retail Consortium (BRC) reported that retail sales in the country had fallen to the lowest levels last month since December 2008.
Read MoreUK retail sales plummet to global crisis lows