LONDON ( The Deal) -- Major European stock indices recovered on Tuesday but Russian markets lost ground after an unexpected 6.5 percentage-point rate rise by Russia's central bank that failed to stem the slide in the ruble. 

The Central Bank of the Russian Federation acted last night after increasing rates last week by one percentage point. The Micex index was down 1.84% at 1,398.82 by early afternoon in Moscow after the ruble tumbled about 10% to touch a record low of about 64 against the dollar. Oil producer Rosneft was down 3.7%, hit by the double whammy of the rate rise and declining oil prices. Shares in companies from elsewhere in Europe that do a lot of business in Russia fell. Austria's Raiffeisen Bank International, which focuses on central and eastern Europe, including Russia, lost 3.4%. 

In London, the FTSE 100 was up 0.89% at 6,237.77. In Frankfurt, the DAX gained 0.74% to 9,403.08. The CAC 40 in Paris edged up 0.47% to 4,024.08. 

In the U.K., November consumer price data from the Office for National Statistics showed the pace of inflation has eased to a below-forecast 1%, a 12-year-low, from 1.3% in October, driven down by falling fuel prices. The decrease reduces the likelihood that the Bank of England will lift rates from their historic low 0.5% anytime soon. 

In Germany, the ZEW institute's index of investor and analyst sentiment showed market protagonists' view of the German situation improved significantly this month from November but their verdict on the eurozone economic situation deteriorated. 

In Madrid, oil producer Repsol (REPYY was down about 1.8% after striking a deal worth $12.9 billion including debt to buy Canada's Talisman Energy (TLM . The Spanish company is offering a 56% premium to its target's Monday closing price, ending several days of speculation about a deal. Some analysts suggested Repsol could have secured the company for less. 

In London, telecom BT Group (BT was up close to 2% in London after announcing exclusive talks with Deutsche Telekom  (DTEGY and Orange  (ORAN to buy those companies' EE Ltd. wireless services provider in the U.K. for 12.5 billion pounds ($19.6 billion). Orange rose over 3% in Paris and Deutsche Telekom gained more than 1% in Frankfurt.

In Singapore, agribusiness Olam International  (OLMIY closed down 2.5% after the company said it would pay $1.3 billion for the cocoa business of Archer Daniels Midland (ADM - Get Report) . The transaction was the second U.S. acquisition the Singaporean company has agreed on in the past 10 days and it has obtained a waiver from the local stock market regulator of the need to put the deal to a shareholder vote.

In Tokyo, the Nikkei 225 closed down 2.01% at 16,755.32 as the yen rose. In Hong Kong, the Hang Seng ceded 1.55% to close at 22,670.50.