Stock indices closed lower on Germany's ZEW economic sentiment index and the Chinese trade data. The Chinese Customs Office released its trade data on Tuesday. China's trade surplus declined to $59.43 billion in September from $60.24 billion in August, beating expectations for a decline to a surplus of $46.79 billion.

Exports fell at an annual rate of 3.7% in September, while Imports slid at an annual rate of 20.4%, the eleventh consecutive decline.

Meanwhile, the economic data from the Eurozone was negative. The ZEW Center for European Economic Research released its economic sentiment index for Germany and the Eurozone on Tuesday. Germany's ZEW economic sentiment index dropped to 1.9 in October from 12.1 in September, missing expectations for a fall to 6.0.

"The exhaust gas scandal of Volkswagen and the weak growth of emerging markets has dampened economic outlook for Germany. However, the performance of the domestic economy is still good and the Euro area economy continues to recover. This makes it rather unlikely that the German economy will slide into recession," the ZEW President Clemens Fuest.

Eurozone's ZEW economic sentiment index decreased to 30.1 in October from 33.3 in September.

Reuters reported on Tuesday that the German government will downgrade its 2015 growth forecasts to 1.7% from the previous estimate of a 1.8% rise, while 2016 growth forecast should remain unchanged at 1.8%, according to a senior government official.

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 September from 0.0% in August, missing expectations for a flat reading.

The decline was driven by low petrol and clothing prices.

"The largest downward contribution came from petrol, with prices falling by 3.7 pence per litre between August and September this year compared with a fall of 0.8 pence per litre between the same 2 months a year ago. Diesel prices are now at their lowest level since December 2009, standing at 110.2 pence per litre," the ONS said.

On a monthly basis, U.K. consumer prices fell 0.1% in September, missing expectations for a flat reading, after a 0.2% rise in August.

Consumer price inflation excluding food, energy, alcohol and tobacco prices remained unchanged at 1.0% in September, missing forecasts of a rise to 1.1%.

The consumer price inflation is below the Bank of England's 2% target.

The U.K. house price index rose at a seasonally adjusted rate of 0.7% in August, faster than a 0.8% in July.

On a yearly basis, the U.K. house price index increased at a seasonally adjusted rate of 5.2% in July, same as in July. It was the lowest rise since September 2013.

The lower house price inflation was mainly driven by a decline in prices in the East and the South East.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,342.28 -28.90 -0.45 %

DAX 10,032.82 -87.01 -0.86 %

CAC 40 4,643.38 -45.32 -0.97 %