European equities closed more than 1 percent higher on Tuesday, buoyed by positive data out of Europe, while shaking off weak numbers from China that caused volatility in Asian markets.
The German DAX closed 1.6 percent up, with the index outperforming after trade surplus data from the euro zone's largest economy suggested strong demand for German goods. Both exports and imports in Germany hit a record high in July.
In addition, official statistics from the European Commission showed that the euro zone economy grew faster than expected in the second quarter, expanding by 1.5 percent year-on-year, versus the previous estimate of 1.2 percent.
European markets were undeterred by lackluster data from China overnight that fueled more worries over global growth. China's trade picture remained grim in August, with dollar-denominated exports declining by 5.5 percent year-on-year.
The benchmark Chinese Shanghai Composite closed up 2.9 percent, however, helping drive European markets.
Meanwhile, U.S. stocks traded sharply higher on Tuesday, trying for recovery after the long weekend and their second-worst week for the year.
Near the market close, shares in K+S spiked 7 percent on media reports that Potash Corp was considering a hostile bid for the German company.
Another top performer was Commerzbank, which ended 6.8 percent higher after JPMorgan raised the rating on the stock to "overweight". from "neutral."
After the close of trade, Heineken announced it was buying a 50 percent stake in U.S. craft beer maker, Lagunitas.