Stock indices closed higher on a deal between Greece and its creditors and on the better-than-expected ZEW economic sentiment data from Germany. 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 climbed to 10.4 in November from 1.9 in October, exceeding expectations for a rise to 6.0.

"The outlook for the German economy is brightening again towards the end of the year. Economic pessimism appears not to have increased after the terror attacks in Paris. The currently high level of consumption in Germany, the recent decline in the external value of the euro, and the ongoing recovery in the United States are likely to bolster the robust development of the German economy," the ZEW President Clemens Fuest.

Eurozone's ZEW economic sentiment index decreased to 28.3 in November from 30.1 in October, missing expectations for an increase to 35.2.

Greek Finance Minister Euclid Tsakalotos said on Tuesday that the Greek government reached a deal with its creditors.

"We have reached agreement on everything, including the 48 additional measures," he said.

The Office for National Statistics (ONS) released the consumer price inflation data for the U.K. on Tuesday. The U.K. consumer price index remained unchanged at -0.1% in October, in line with expectations.

The decline was driven by lower food, alcohol and tobacco prices.

Consumer price inflation excluding food, energy, alcohol and tobacco prices climbed to 1.1% year-on-year in October from 1.0% in September. Analysts had expected the inflation to remain unchanged at 1.0%.

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

The European Central Bank (ECB) Chief Economist Peter Praet said in an interview with Bloomberg published on Tuesday that downside risks may increase due to terror attacks in Paris.

He also said that inflation in the Eurozone remained low, adding that data was "a little bit less encouraging".

"I would say that the downside risks haven't decreased, probably rather, unfortunately, increased a little bit," Praet noted.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,268.76 +122.38 +1.99 %

DAX 10,971.04 +257.81 +2.41 %

CAC 40 4,937.31 +133.00 +2.77 %