German stocks traded higher on Tuesday after software giant SAP raised its full-year targets on a strong cloud business in the third quarter.
The benchmark DAX was up 86 points, or 0.4 percent, at 19,548 after declining 1 percent in the previous session.
SAP jumped 5.5 percent after raising its full-year outlook.
Automakers BMW, Mercedes Benz and Volkswagen were seeing modest gains even as industry data showed Europes new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy.
New car sales decreased 6.1 percent in September from a year ago, according to data published by the European Automobile Manufacturers Association.
However, this was much slower than the 18.3 percent fall posted in August.