By Clare Connaghan 

European stocks edged higher early Tuesday ahead of a key survey of business confidence in Germany, Europe's largest economy.

The benchmark Stoxx Europe 600 index was up almost 0.7%, while the U.K.'s FTSE 100 and France's CAC 40 both added 0.9% and Germany's DAX rose 0.7% ahead of the Ifo institute's business confidence index due at 0900 GMT.

Expectations are for the business confidence index to fall to 107.9 in March, from 111.3 in February.

But Monday's weak manufacturing and services Purchasing Managers Index readings out for Germany "suggest there is downside risk" to the Ifo release, said Lars Christensen, chief analyst at Danske Bank.

Elsewhere, Russian financial markets shrugged off the news that leaders of the world's largest economies had agreed to remove the country from the Group of Eight nations in response to Moscow's military intervention in Ukraine.

The benchmark Micex stock index is up almost 0.7% Tuesday, while the ruble has rallied to a near one-month high against the dollar of 35.76 rubles.

The ruble is "benefiting from substantial seasonal tax payments," emerging market strategists at Commerzbank said, in a note to clients.

Elsewhere, the euro is trading steady against the dollar at $1.38365 ahead of the Ifo release, while the pound is little changed ahead of consumer price inflation data due at 0930 GMT.

In commodities, gold was up 0.4% at $1,314.30 an ounce, while Brent crude was almost flat at $106.85 a barrel.

Write to Clare Connaghan at clare.connaghan@wsj.com

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