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Europe closes flat after US GDP beats expectations

European shares closed flat to higher on Tuesday as investors digested revised third quarter gross domestic product (GDP) data from the U.S., which showed the economy grew more than previously thought.

Read MoreEurope looks 'aged and weary': Pope Francis

German shares outperformed, with the benchmark DAX closing provisionally up 0.6 percent. This came after Germany confirmed its economy grew 0.1 percent in the third quarter from the second.

The U.K. FTSE 100 Index closed flat, while the French CAC unofficially ended 0.1 percent higher.

The pan-European Euro Stoxx 600 Index closed flat at around 346.

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
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DAX
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CAC
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IBEX 35
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Market chatter on Tuesday morning also involved the possibility of quantitative easing by the European Central Bank with its governing council set to meet in the latter part of next week.

Read MoreWhat global slowdown? US economy surges in Q3

U.S. stocks turned lower on Tuesday, after the S&P 500 hit another peak, after data had the U.S. economy growing more than previously forecast in the third quarter and consumer confidence dipped in November.

The Commerce Department reported gross domestic product climbed at a 3.9 percent annualized rate, up from an initial 3.5 percent estimate.

Carney speaks

In the U.K., Bank of England Governor Mark Carney testified in front of the Treasury Select Committee. He moved to reassure lawmakers and investors that the bank could still use stimulus measures despite being on-track to normalize interest rates next year. He said that it has "considerable flexibility" were it to become necessary to provide extra stimulus.

Read MoreBank of England 'flexible' on policy turnaround

Supermarkets slip

Shares in U.K. supermarket Tesco fell after a London law firm rallied shareholders to join a lawsuit to seek compensation for losses, after the supermarket discovered a hole in profits earlier this year. Its shares closed down around 2.7 percent.

In addition, Sainsbury's fell to the bottom of the FTSE 100, losing over 4 percent.

Kingfisher shares also lost more than 4 percent. The European home improvement retailer warned not to expect a speedy recovery in France, the market that contributes to more than half of its profits. The group posted a 11.8 percent drop in third quarter earnings.

Petrofac shares slumped again on Tuesday with analyst downgrades from Deutsche Bank, Natixis and Exane BNP Paribas.

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