European equities closed largely lower on Tuesday as investors were left on edge shrug off negative sentiment from Asia, after Chinese stocks tanked again.
European investors watched as Chinese shares lurched lower in late trading on Tuesday, with the benchmark Shanghai Composite closing 6.1 percent down.
This came as the yuan declined further, despite the People's Bank of China raising the midpoint rate of the currency to 6.3966 per U.S. dollar—slightly firmer than the previous fix of 6.3969.
U.S. equities traded in narrow range on Tuesday as Wall Street digested the latest plunge in Chinese stocks, more housing data and a couple of Dow component earnings.
Platinum producer Lonmin fell to the bottom of the STOXX 600, finishing 7.6 percent lower at a record low. Shares in the group plunged after RBC downgraded its price target and rating to underperform.
More broadly, mining and energy stocks were hit by the continued slump in commodity prices. Oil prices remained near six-year lows on Tuesday, with Brent crude trading around $48.60 per barrel and U.S. crude at around $42.20.
Other than Lonmin, one of the worst performers was Tullow Oil, which ended down around 2.9 percent.
In other news, inflation in the U.K. fell by 0.2 percent in July, down from a flat reading in June, official data showed on Tuesday.
Attention will be back on Greece on Wednesday, when the German parliament will vote on whether to support Greece's prospective third bailout.
Greece's stock exchange closed down around 1.1 percent on Tuesday.