European Equities Close Higher in Tuesday Trading; Euro Area Inflation Decelerates in March

European stock markets closed higher in Tuesday trading as The Stoxx Europe 600 rose 1.08%, Germany's DAX climbed 1.67%, the FTSE 100 in London was up 0.61%, France's CAC 40 advanced 1.1%, and the Swiss Market Index gained 0.70%.

Euro area annual inflation is estimated at 2.2% in March, down from 2.3% in February according to a flash estimate from Eurostat, the statistical office of the EU. The highest annual inflation rates were in Croatia, Estonia, and Slovakia at 4.3% each. France had the lowest annual inflation rate at 0.9%, followed by Luxembourg at 1.5%, and Ireland at 1.8%.

Eurostat also reported that the euro area seasonally-adjusted unemployment rate was 6.1% in February, down from 6.2% in January and 6.5% a year earlier.

The HCOB Eurozone Manufacturing PMI compiled by S&P Global, which gauges the health of eurozone factories, increased in March for the third straight month to 48.6 from 47.6 in February. Despite the rise, the index remains below the 50.0-point threshold separating expansion from contraction.

"Things are looking up. The PMI has increased for the third month in a row and the output index even surpassed the threshold for growth," Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said in a release. 

"However, given the geopolitical developments, there is also increasing speculation that the defense sector will expand significantly over the next few years, with direct and indirect positive effects on the industry."