European stocks closed largely flat Tuesday afternoon, with the pan-European Stoxx 600 down 0.04 percent. This followed a day of trading in which global sentiment recovered after a sell-off in technology stocks and increased tensions on the Korean Peninsula.

Deutsche Wohnen was among the top performers after announcing a new convertible bond offering of 800 million euros ($ 947.60 million). The stock rose 3.3 percent.

Health care stocks were down by 0.3 percent following news that an attempt to repeal Obamacare has failed. This after U.S. Senator Susan Collins said she would oppose her party's bill. Novo Nordisk was also down by 1.7 percent after BNP Paribas moved it to "neutral" from "outperform".

British lender Close Brothers Group was among the worst-performing companies on the European benchmark, down by more than 5 percent. The lender said Tuesday that though current market conditions were stable, the long-term economic outlook was "uncertain" due to Brexit.

AA hit the bottom of the benchmark, down by nearly 4.5 percent as its growth figures failed to improve. Analysts at Jefferies said that they are worried the firm cannot generate enough cash flow and rated it at an "underperform" level. Analysts at Liberum lowered the target share price for the company but said the appointment of Simon Breakwell as permanent chief executive should be well received.