Flash data released Tuesday morning showed that the composite purchasing manager's index (PMI) for the euro zone in June rose to 54.1, up from 53.6 in May - a 49-month high for the index by Markit that surveys activity in the region's services and manufacturing industries.
The French CAC index closed around 1.2 percent higher, after composite PMI data for the country rose to 53.4 in June, up from a final reading of 52.0 in May.
The German DAX also closed higher at 0.7 percent, while the London FTSE 100 index closed just 0.1 percent higher.
In individual stocks news, Delhaize Group closed near the top of the Stoxx 600 at 8.4 percent, after supermarket group Ahold said it was in the "final stages" of merger talks. Ahold ended the day 1.8 percent higher.
Sports Direct finished at the top of the FTSE 100 index, as RBC Capital Markets lifted its rating on the apparel retailer to outperform.