This is CNBC's live blog covering European markets.

LONDON — European stock markets closed higher on Tuesday, tracking global counterparts as investors look ahead to a fresh round of economic data this week.

The pan-European Stoxx 600 index ended 1% higher, with all sectors and major bourses in positive territory. Mining stocks added 2.1% to lead gains.

Major European indices advanced on Monday, though U.K. markets were closed for a public holiday.

Shares in Asia-Pacific rose overnight, building on the positive Monday session, as Hong Kong and mainland Chinese stocks led gains.

The momentum came after a winning day on Wall Street — a rarity in recent weeks — and U.S. stocks rose again on Tuesday.

Investors also continue to try to chart the course of monetary policy, after Federal Reserve Chairman Jerome Powell reiterated on Friday that the central bank could hike interest rates further, if inflation does not return to target.

While Powell said the Fed could be flexible, he added it still has further to go to fight inflation. "Although inflation has moved down from its peak — a welcome development — it remains too high," he said in prepared remarks.

"We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."

As global stock markets enter the final few days of what has been a rough month, attention will turn toward a fresh batch of economic data. Of particular interest will be the U.S. Labor Department's release of nonfarm payrolls, which shows the pace of jobs and wage growth and could guide the Fed on how to proceed with its monetary policy.

Biggest movers: NN Group up 9%, Carrefour down 4%

Dutch insurance company NN Group saw its shares surge more than 9% by mid-afternoon on Tuesday after posting a strong first-half earnings report.

At the bottom of the Stoxx 600 index, French retailer Carrefour dropped more than 4% after its CEO warned that French consumers are massively cutting back on essential purchases due to high prices.

- Elliot Smith

Sweden's economy expected to shrink further after data shows GDP fell in the second quarter

Sweden's economy shrank in the second quarter, according to data from the statistics office, primarily because of reduced exports of goods and a decrease in inventories.

Data published Tuesday showed Sweden's gross domestic product decreased by 0.8% when compared to the first three months of the year. The contraction was smaller than expected by analysts polled by Reuters, however.

"The latest figures actually show that employment [continues] to increase but we do see that the slowdown in the economy is broadening from just consumption and housing construction to export as well," Christina Nyman, chief economist and head of economic research at Handelsbanken, told CNBC's "Squawk Box Europe" on Tuesday.

"We do expect the economy to slow down more, but we still have a very strong labor market, so it is a mixed picture still," Nyman said.

— Sam Meredith

Biggest movers: NN Group up 10%, Acciona Energia up 4%

Dutch insurance company NN Group saw its shares surge more than 10% on Tuesday morning after posting a strong first-half earnings report.

Spain's Acciona Energia gained 4% after announcing a share buyback representing around 1.5% of the company's share capital.

- Elliot Smith

Swedish economy posts smaller-than-expected contraction in the second quarter

Sweden's GDP contracted by 0.8% in the second quarter, well below a flash estimate of 1.5% released last month.

Though decreased trade inventories and slower exports weighed on activity, the economy held up surprisingly well against a backdrop of higher inflation and interest rates, and an ailing property market.

Year-on-year, GDP was down 1%, a much smaller contraction than the 2.4% preliminary estimate.

A positive open for Europe

European stocks made a positive start to Tuesday's trade, tracking positive momentum around the world.

The pan-European Stoxx 600 index was up 0.6% in early trade, with mining stocks adding 1.7% to lead gains as all sectors and major bourses opened in positive territory.

- Elliot Smith

Here are the opening calls

Britain's FTSE 100 is seen around 82 points higher at 7,421, Germany's DAX is set to open up around 52 points at 15,845, and France's CAC 40 is expected to add around 25 points to 7,350, according to IG data.

Toyota suspends operations at a dozen Japan factories

Toyota has halted operations in 12 assembly plants in Japan as a result of a system glitch, the world's largest automaker said, according to Reuters.

While the cause of the problem has not been identified, it is most likely not from a cyberattack, Toyota's spokesperson said.

Toyota's shares last traded 0.39% lower.

— Reuters, Lee Ying Shan

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CNBC Pro: Analysts pick 4 high-performance semiconductor stocks to play the booming market

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— Lucy Handley