Stock movements
The pan-European STOXX 600 index fell 0.5 percent, with healthcare, chemicals and personal goods sectors falling more than 1 percent.
Economic concerns continued to weigh on sentiment.
German industrial orders rose more than expected in July, but eurozone retail sales fell on a year-on-year basis.
This, along with some signs of weakness in the US labor market, has prompted traders to be cautious ahead of key US non-farm payrolls data due on Friday.
The French index fell 0.9 percent, recording its third straight loss, as concerns about slowing consumption in China weighed on luxury goods stocks.
The luxury goods index fell more than 3 percent, with LVMH down 3.6 percent and Hermes down 6.4 percent.
The appointment of Michel Barnier, the European Union’s former Brexit negotiator, as France’s prime minister helped lift some bank stocks and government bonds in hopes of calming the political turmoil that has gripped the country since President Emmanuel Macron called early elections in June.
The German DAX index stabilized.
The Ifo Institute said the German economy is likely to enter a recession this year, in contrast to previous expectations of growth of 0.4 percent.
Interest rate-sensitive utilities and real estate sectors posted the biggest gains, rising more than 1 percent as traders continued to anticipate rate cuts this month from both the European Central Bank and the U.S. Federal Reserve.
On the corporate front, Airbus shares fell 1.4 percent after the European aviation safety regulator said it would order inspections of at least part of its A350 fleet after an engine part failed during a Cathay Pacific flight.
Vestry shares jumped 8.5 percent after the British construction company said it would buy back £130 million worth of shares after its first-half profit rose 7 percent.
Technology stocks fell broadly, extending their losing streak from the previous session, with ASML Holdings falling 2.2 percent, tracking a decline in U.S. semiconductor stocks.
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