European stock markets are trading higher on Tuesday as investors regained some optimism for tax cuts and fiscal stimulus from President Donald Trump.

Europe's leading Blue-chip index, EURO STOXX 50 gained 10.84 points or 0.32 percent to trade at 3,447.98. UK's benchmark index FTSE 100 gained 2.96 points or 0.04 percent to trade at 7,296.46.

Meanwhile, Germany's benchmark index DAX went up 77.09 points or 0.64 percent to trade at 12,073.16. French benchmark index CAC 40 rose 8.31 points or 0.17 percent to trade at 5,025.74.

On Monday, European stock markets closed lower. Europe's leading Blue-chip index, EURO STOXX 50 declined 7.01 points or 0.2 percent to settle at 3,437.14. UK's benchmark index FTSE 100 fell 43.32 points or 0.59 percent to close at 7,293.50.