Europe ends sharply lower; bond selloff weighs

European equities finished sharply lower Tuesday as bond markets sold off, amid a raft of corporate earnings.

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IBEX 35
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The pan-European Euro Stoxx 600 Index tumbled, closing around 1.3 percent lower. The German DAX showed losses of 2 percent earlier in the session before finishing around 1.8 percent lower, while the French CAC and the FTSE ended around 1.1 percent and 1.4 percent lower respectively.

Safe-haven bond markets succumbed to heavy selling once more on Tuesday, sending equity markets down sharply while the euro jumped 1 percent against the dollar.

Yields, which moves in the opposite direction to price, on Germany's benchmark 10-year Bunds soared over 10 basis points to about 0.72 percent, before dipping later in the session.

The yield on the 10-year U.S. Treasury, rose to about 2.35 percent, the highest level since December, before slipping to trade around 2.25 percent.

U.K.-listed airline easyJet fell to the bottom of the benchmark, with a loss of of close to 10 percent. The company reported a swing to profit in its first-half results, but analysts were nervy on its outlook for the rest of the year.

Danish brewer Carlsberg saw its shares fall around 5 percent as it kept its 2015 outlook unchanged and reported a loss for the first quarter, highlighting volatility in its Russian operations.

Shares of Deutsche Post slipped over 4 percent as it posted a profit drop Tuesday morning and said it was reviewing its restructuring costs.

Meanwhile, shares of Ahold and Delhaize rose again following confirmation that they were holding talks over a possible merger.

Read MoreAhold, Delhaize confirm merger talks; shares rise

Across the Atlantic, U.S. stocks traded mildly lower, paring losses on Tuesday as investors found some relief from a slight recovery in the bond market.

The Dow Jones Industrial Average recovered to trade about 30 points lower after plunging more than 170 points in the open.