Stock indices traded higher on comments by the European Central Bank (ECB) Executive Board Member Benoit Coeure. He said on Monday that the ECB plans to expand its asset purchases in May and June due to low market liquidity in July and August. He added that a selloff in the European government bond market was a normal correction, but the pace of the selloff was worrisome.

The euro dropped against the U.S. dollar after Coere's comments.

Germany's ZEW economic sentiment index dropped to 41.9 in May from 53.3 in April, missing expectations for a decline to 49.0.

The ZEW President Clemens Fuest said that expectations were adjusted after the weak first quarter figures.

Eurozone's ZEW economic sentiment index fell to 61.1 in May from 64.8 in April.

Eurozone's consumer price index rose 0.2% in April, after a 1.1% increase in March.

On a yearly basis, Eurozone's final consumer price inflation climbed to 0.0% in April from -0.1% in March, in line with expectations.

Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco remained unchanged at an annual rate of 0.6% in April, in line with expectations.

The Office for National Statistics (ONS) released the consumer price inflation data for the U.K. on Tuesday. The U.K. consumer price index declined to -0.1% in April from 0.0% in March. It was the lowest level since 1960, based on comparable historic estimates.

Analysts had expected the index to remain unchanged.

The fall was driven by a decline in air and sea fares.

The Bank of England Governor (BoE) Mark Carney said last Wednesday that the consumer price inflation could turn negative, but it is expected to rise towards the end of the year.

Consumer price inflation excluding food, energy, alcohol and tobacco prices fell to 0.8% in April from 1.0% the month before.

Current figures:

Name Price Change Change %

FTSE 100 6,990.79 +21.92 +0.31 %

DAX 11,790.09 +195.81 +1.69 %

CAC 40 5,100.09 +87.78 +1.75 %