European stocks closed slightly higher on Tuesday, extending the advance from the prior session as markets navigated political turmoil and fresh M&A news while assessing the outlook on global rates. The Eurozone's STOXX 50 added 0.2% to 5,372 and the pan-European STOXX 600 inched higher to 553. The French parliament voted on a vote of no confidence on Prime Minister Bayrou as parties could not agree to budget cuts, forcing President Macro to appoint the country’s fifth PM in less than two years. In the meantime, bond yields traded in narrow fashion despite the turmoil, supporting equities ahead of the ECB's likely rate hold this week. In turn, Anglo American surged 8.7% after the announcement that it will acquire Teck Resources for $20.2 billion. In the meantime, Italian banks were higher following news that Banca MPS secured control of Mediobanca for €16 billion, lifting its stake in the lender to 62.3%.