Stock indices closed mixed as market participants were cautious ahead of the European Central Bank's (ECB) monetary policy meeting on Thursday. Analysts expect the central bank to add further stimulus measures.
Meanwhile, the economic data from Eurozone was positive. Eurostat released its unemployment data for the Eurozone on Tuesday. Eurozone's unemployment rate declined to 10.7% in October from 10.8% in September. It was the lowest reading since January 2012. Analysts had expected the unemployment rate to remain unchanged at 10.8%.
Markit Economics released its final manufacturing purchasing managers' index (PMI) for the Eurozone on Tuesday. Eurozone's final manufacturing purchasing managers' index (PMI) rose to 52.8 in November from 52.3 in October, in line with the preliminary reading.
Production and new orders grew in all countries except Greece.
"The euro area's manufacturing recovery continued to build momentum in November, with factory output and new orders both showing the largest monthly gains for one-and-a-half years," Chris Williamson, Chief Economist at Markit said.
"It's by no means a spectacular pace of expansion, however, broadly consistent with 2% annualised growth, and there are also few signs of underlying inflationary pressures picking up," he added.
Germany's final manufacturing purchasing managers' index (PMI) climbed to 52.9 in November from 52.1 in October, up from the preliminary reading of 52.6.
France's final manufacturing purchasing managers' index (PMI) remains unchanged at 50.6 in November, down from the preliminary reading of 50.8.
The Federal Labour Agency released its unemployment figures for Germany on Monday. The number of unemployed people in Germany fell by 13,000 in November, exceeding expectations for a 5,000 decline, after a 7,000 decrease in October. October's figure was revised up from a 5,000 decline.
The unemployment rate fell to 6.3% in November from 6.4% in October. Analysts had expected the unemployment rate to remain unchanged at 6.4%.
Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Tuesday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. declined to 52.7 in November from 55.2 in October, missing expectations for a fall to 53.6. October's figure was revised down from 55.5.
A reading above 50 indicates expansion.
The decline was driven by a slower pace of the growth in output and new orders.
"UK manufacturing is moving back into expansion mode during quarter four, as it starts to reverse the losses sustained in the prior quarter. Although the pace of growth so far is only very modest, it positions manufacturing as less of a drag on the broader economy," Markit's Senior Economist Rob Dobson said.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,395.65 39.56 0.62 %
DAX 11,261.24 -120.99 -1.06 %
CAC 40 4,914.53 -43.07 -0.87 %