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For the third consecutive trading day on Tuesday, French stocks, bonds, and currencies continued to experience a selloff driven by political uncertainties. Analysts suggest that the upcoming interest rate decision by the US Federal Reserve could potentially mitigate the decline.

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Stocks were seen on the rebound as investors showed relief that a wider conflict in the Middle East might be averted. Gold and the dollar eased back as crude oil prices slipped following Iran's Friday comments that it is not looking to retaliate after Israel's reported drone attack.

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European markets were all in the red on Tuesday afternoon as traders continued to monitor developments in the Middle East - and digest fresh economic data from China.

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