On the data front, U.K. inflation data for April showed that consumer prices fell into deflationary territory for the first time since 1960. Meanwhile, a second reading of euro area inflation confirmed it was flat in April compared to the year before.
German investor sentiment fell sharply in May from the month before, according to a closely-watched survey published on Tuesday.
Concerns about Greece continue to rumble, with the country locked in debates with its international bailout supervisors over a cash-for-reforms deal.
Nonetheless, the Athens Composite index rallied to close around 2.6 percent higher on Tuesday.
"For all the talk of so-called red lines among the various parties involved in the Greece debt talks, markets still remain remarkably sanguine about the prospects of some form of deal between Greece and its creditors in the coming days," Michael Hewson, the chief market analyst at CMC Markets, said in a note.