European benchmarks rose Tuesday as fallers from the previous session paired losses and concerns over political risks receded, in favor of a renewed focus on economic data and monetary policy. 

In the eurozone the ZEW Economic Sentiment survey showed confidence among institutional investors rising sharply during June, even though it dipped in Germany. 

Over in the U.K. inflation rose further during the recent month, according to CPI data released by the Office for National Statistics, with headline CPI rising 20 basis points to 2.9% while core inflation also gained 20 basis points, this time to 2.6%. 

Rising energy prices and increases in the cost of other imported goods were the primary drivers behind the price change and are thought to be the result of the fall in the value of the pound sterling since the referendum. 

The FTSE 100 slipped by 0.15% to 7,500 in London while the CAC 40 rose 0.40% to 5,261 in Paris. The DAX index gained 0.59% to settle at 12,764 in Frankfurt.

Over in southern Europe, both the IBEX in Madrid and the FTSE MIB in Milan were higher by the close. 

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In individual stocks, theme park operator Merlin  (MIINF) stock fell after it said that, although year-to-date trading has been in-line with expectations, recent terror attacks in the U.K. are already hitting demand and could prove a weight around its performance through the rest of the year. 

Construction equipment rental firm, Ashtead (ASHTF) , stock fell more than 2% during the session despite delivering an in-line set of full year results and issuing positive guidance for the year ahead, thanks to a stronger pound. It draws more than three quarters of its revenue from the U.S. and has been a big beneficiary a weaker sterling and President Donald Trump's talk of infrastructure spending. 

Other big fallers in London included British Gas owner Centrica (CPYYY) , weapons maker BAE Systems (BAESY) and emerging market bank Standard Chartered (SCBFF) , all falling more than 1%.

On a more positive note, RBS (RBS) - Get Royal Bank of Scotland Group plc Sponsored ADR Report stock rose as much as 3% during the London session after reports suggested it is close to a settlement with the Federal Housing Finance Agency over the alleged crisis era miss-selling of mortgage-backed securities. 

In Amsterdam, Heineken (HEINY) stock slipped by around 0.20% after the Competition & Markets Authority in the U.K. said that it has concerns over its takeover of 1,900 pubs in Britain. The beermaker said it is confident of addressing the regulator's concerns although this wasn't enough to prevent the stock from edging lower. 

In Paris, opticians supplier Essilor International (ESLOY) and advertising agency Publicis  (PUB) - Get People's Utah Bancorp Report were the top gainers on the CAC 40 after adding close to 3% each. 

Big gainers in Frankfurt included Lufthansa (DLAKY) , Deutsche Boerse (DBOEY) and chemicals firm Bayer (BAYRY) - Get Bayer AG Report