European stock markets settled higher on Tuesday, getting a lift after Greece signed a deal to release the next tranche of bailout aid and after data showed eurozone manufacturing output on the rise.

Europe's leading Blue-chip index, EURO STOXX 50 rose 18.62 points or 0.52 percent to settle at 3,578.21. UK's benchmark index FTSE 100 went up 46.11 points or 0.64 percent to close at 7,250.05.

Germany's benchmark index DAX gained 69.89 points or 0.56 percent to end at 12,507.90. French benchmark index CAC 40 add 36.82 points or 0.70 percent to end at 5,304.15.