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