On the data front, price growth in the U.K. slowed once again in January, edging closer to deflationary territory and marking its lowest level since records began in 1989. The Consumer Prices Index (CPI) came in at just 0.3 percent in January, the Office of National Statistics (ONS) said Tuesday. This was in line with analyst forecasts but marked a move down from December's 14-year low of 0.5 percent.
The German Zew Economic Sentiment Index for February showed further improvement for the country, with a rise to 53.0 from 48.4 in January.
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Meanwhile, fighting in Ukraine continued despite an apparent ceasefire, which also lessened investor appetite for risk. The country - ravaged by conflict between government troops and pro-Russian separatists - showed a fall in gross domestic product (GDP) fell by 15.2 percent year-on-year in the fourth quarter of 2014, according to the State Statistics Service of Ukraine on Tuesday morning.