Europe's main stock markets steadied on Tuesday following strong gains the previous session, as investors digested news that German business confidence dipped slightly below last month's record high.

In late morning trades, London's benchmark FTSE 100 was up 0.2 percent compared with the close on Monday.

In the eurozone, Frankfurt's DAX 30 index was flat and the Paris CAC 40 dipped 0.1 percent.

Leading indices in the single-currency area had risen by around 1.5 percent on Monday as US President Donald Trump's tax-cutting plans moved a step closer. 

On Tuesday in Germany, Europe's top economy, the Ifo economic institute revealed that its business climate index hit 117.2 points in December, slightly below November's historic 117.5.