U.K. homebuilders took a hit on Tuesday after the Bank of England said a rise in interest rates is edging closer.
Speaking at a Treasury committee meeting, Carney said while the pace of rate rises will be gradual, an interest rate rise in the U.K. is "moving closer".
House builders Berkeley and Bellway tumbled around 2.5 and 3.5 percent respectively.
U.K. inflation slipped back to zero in June after a small uptick in May as food and clothing dropped in price. Meanwhile, German Zew Institute's economic sentiment index fell to 29.7 points in June, from 23.5 points the previous month.
In individual stock news, Sky climbed 4 percent to the top of the FTSE after Deutsche Bank raised its outlook on the stock from buy to hold.
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