European shares extended losses on Tuesday's close after investors digested another batch of corporate earnings and prepared for the Federal Reserve's rate decision later in the week.
The pan-European Stoxx 600 index had opened the trading day flat before falling 1.07 percent with all sectors posting losses.
The U.S. dollar retreated ahead of the looming rate decision from the Federal Reserve and Sterling/Dollar was trading 0.14 percent down at the close of European trading. Meanwhile, the Dow Jones industrial average dipped lower after a promising start to the day, it was 0.45 percent down with the broader S&P 500 index trading 0.59 percent in the red.
Shell, the multinational oil firm, saw its shares rise 2.93 percent, after reporting better-than-expected earnings for its third quarter on Tuesday. Further to this, significant cuts from Shell in spending and an oil price downturn in its third consecutive year seemed to boost investor confidence.
BP shares fell 4.4 percent, despite reporting earnings that were above the consensus expectations. The oil major saw its net income nearly halve from the same period last year.
The political instability regarding the U.S. presidential election remains a concern among investors with only one week to go until voters head to polling stations. A NBC News survey showed that the 6-point lead of Hillary Clinton over Donald Trump seemed unchanged since last week, despite the FBI's announcement that it would be investigating additional emails regarding Clinton's use of a private email server.
Elsewhere, both the Reserve Bank of Australia and the Bank of Japan decided to keep their policies unchanged Tuesday. Members of the Federal Reserve are also due to start of a two-day meeting on Tuesday, with a rate decision due Wednesday.
Governor Mark Carney of the Bank of England announced Monday he would not step down until 2019 - one more year than previously expected – to help Britain offset the uncertainty regarding Brexit. Prime Minister Theresa May is chairing a weekly cabinet meeting following reports of divisions among ministers on Brexit negotiations.
On the data front, U.K. October PMI figures saw robust growth in factory prices. The manufacturing PMI came in at 54.0, versus a forecast for 54.0 from Dow Jones.