European shares ended lower on Tuesday breaking a three-day winning streak.
The financial sector performed worst, particularly Greek banks.
Investors were concerned about the health of the German economy after think-tank ZEW’s monthly poll of economic sentiment declined for a third consecutive month in December.
And the bourses extended losses in reaction to a key reading of manufacturing activity in New York State.
It unexpectedly plummeted in December, suffering the biggest monthly decline on record, which signalled the recent revival in the factory sector is slowing.
In addition US producer prices were up 1.8 percent in November – the largest gain in three months – leading to speculation the Federal Reserve might move more quickly to raise interest rates to curb inflation.