European stock markets are trading higher on Tuesday, as the U.S. dollar continues to slide amid an expectation of slower interest rate hikes.

Europe's leading Blue-chip index, EURO STOXX 50 gained 16.30 points or 0.47 percent to trade at 3,453.78. UK's benchmark index FTSE 100 gained 0.70 points or 0.01 percent to trade at 7,430.51.

Meanwhile, Germany's benchmark index DAX gained 13.60 points or 0.11 percent to trade at 12,066.50. French benchmark index CAC 40 rose 19.22 points or 0.38 percent to trade at 5,031.38.

On Monday, European stock markets closed lower. Europe's leading Blue-chip index, EURO STOXX 50 fell 10.93 points or 0.32 percent to settle at 3,437.48. Germany's benchmark index DAX lost 42.34 points or 0.35 percent to end at 12,052.90. French benchmark index CAC 40 fell 17.08 points or 0.34 percent to end at 5,012.16