European markets ended mostly lower on Tuesday as investors reacted to disappointing industry surveys and kept a close eye on the fluctuating moves in the oil price.
The pan-European finished down 0.65 percent with almost all sectors closing in negative territory.
European markets
The FTSE slipped 0.55 percent by the close, after a survey by the CBI (Confederation of British Industry) and PwC out Tuesday revealed deteriorating business sentiment in the U.K. after the country's vote to leave the European Union.
France's CAC 40 also ended in the red, off 0.48 percent, while the German DAX only ended 0.07 percent down.
Food and beverages stocks were Tuesday's worst performers, with the sector tumbling 1.37 percent by the close. Brewing powerhouse Anheuser-Busch InBev (AB InBev) announced its Arlode packaging line would be online by October, with expansions in the business set to create 70 additional full-time jobs. Its shares fell 1.83 percent at the end of trade.
Elsewhere, Marks & Spencer reported a 1.2 percent fall in household and clothing sales for the three months to July 1, causing the stock hit the bottom of the benchmark during trade, however it pared some losses, ending 4.69 percent down. Chief Executive Steve Rowe said the results were in line with expectations.
Media stocks ended 0.79 percent down. Pearson announced plans to raise £776 million ($999 million) by selling a 22 percent stake in Penguin Random House. Despite some early gains, its shares extended losses to finish over 5 percent lower.
Meanwhile, basic resources and autos ended higher, bucking the weaker trend seen across other sectors. Miners, Anglo American, Glencore and Boliden were some of the top performers, while Fiat and Daimler boosted to autos sector.
US news continues to dominate
Meanwhile, in the U.S., Wall Street traded mixed around Europe's market close as investors weighed the possibility of higher sovereign bond yields.
Investors are also in wait and see mode, listening out for more clues regarding interest rate movements from Federal Reserve policymakers. Yellen's semi-annual testimony to Congress is the highlight of the week with the Fed chair set to deliver remarks on Wednesday and Thursday.
The Russia-linked scandal surrounding the White House rumbles on, with the New York Times reporting Monday that Donald Trump Jr. met with a Russian lawyer with damaging information on then-presidential candidate Hillary Clinton, aware that the Russian government was attempting to support his father's campaign. The White House played down the importance of the meeting.
Another factor keeping investors on their toes on Tuesday was the choppiness in oil markets. Despite earlier losses, oil prices turned higher by the market close in Europe, with Brent trading higher at $47.09, while U.S. crude hovered around $44.61.
—CNBC's Alexandra Gibbs contributed to this report.