European stock markets are trading higher on Tuesday as the U.S. dollar stood near a 13-and-a-half-year high and treasury yields continued to rise as traders anticipate President-elect Donald Trump's policies will stoke inflation.

Europe's leading Blue-chip index, EURO STOXX 50 gained 1.47 points or 0.05 percent to trade at 3,041.27. UK's benchmark index FTSE 100 went up 52.46 points or 0.78 percent to trade at 6,805.64.

Meanwhile, Germany's benchmark index DAX gained 15.47 points or 0.14 percent to trade at 10,709.16. French benchmark index CAC 40 went up 22.90 points or 0.51 percent to trade at 4,531.45.

On Monday, European stock markets closed higher. Europe's leading Blue-chip index, EURO STOXX 50 gained 9.78 points or 0.32 percent to settle at 3,039.80. UK's benchmark index FTSE 100 rose 22.75 points or 0.34 percent to close at 6,753.18.