- German investor confidence drops
- Ukraine says no to Russian aid
- Thousands of civilians still trapped in Iraq
- No progress on Gaza negotiations, says official
- French deficit widens
FTSE 100: -0.01%
CAC 40: -0.85%
FTSE MIB: -0.23%
IBEX 35: 0.47%
Stoxx 600: -0.19%
European stocks were little changed as German investor confidence declined on geopolitical crises and the French deficit expanded.
ZEW's economic sentiment index for Germany plunged to 8.6 in August from 27.1 in July, marking the eighth consecutive decrease and the lowest level since December 2012.
"The decline must relate largely to fears about the effects of the Ukraine crisis, which could prove short-lived given the recent partial recovery in German equity prices," Capital Economics said.
"But the further confidence falls, the greater the risks to actual economic activity. Data later this week are likely to reveal that the German economy more or less stagnated in second quarter. While a renewed expansion seems likely in third quarter and beyond, the recovery seems to have passed its peak."
Ukraine has said it will not allow a Russian convoy carrying humanitarian aid to enter its territory.
"We will not consider the possibility of any movement of the Russian column on the territory of Ukraine," said Valeriy Chalyy, deputy head of the presidential administration, according to The Telegraph. Chalyy added that any aid would have to be loaded onto transport provided by the Red Cross and Russian personnel were not allowed to escort the delivery.
Russia sent almost 300 trucks carrying humanitarian aid to eastern Ukraine early on Tuesday morning.
In Iraq, tens of thousands of civilians remain trapped by fighters from Islamic State (IS) on a mountain in northern Iraq, the United Nations said.
US air strikes continued on Tuesday, with a drone targeting an IS mortar near Kurdish troops, the Pentagon said.
On Monday Iraq's president asked MP Haider al-Abadi to form a new cabinet, removing Prime Minister Nouri Maliki.
Meanwhile, negotiations to end the month-long conflict between Israel and Hamas have made little progress, officials said on Tuesday.
The 72-hour truce that began on Sunday held for a second consecutive day but Israeli and Palestinian negotiators weren't any closer to reach an agreement last night, as both parties attended talks in Cairo.
In France, the current-account deficit widened in June after the country's largest listed bank by assets, BNP Paribas, paid a multibillion-dollar fine in the US for violating sanctions against Iran, Cuba and Sudan.
The Eurozone's second-largest economy recorded a €7.4bn current-account deficit in June compared with €3.3bn in May, the Bank of France said. Excluding the impact of the fine, the deficit was €3.1bn.
Fugro retreated after Natixis downgraded the shares
to 'reduce' from 'neutral', blaming first-half impairment charges, restructuring of some of its operations and margin pressures.
Prudential rallied after saying first-half operating profit rose 17% to £1.52bn, exceeding market expectations.
Hargreaves Lansdown edged lower after UBS initiated coverage of the stock with a 'sell' rating, saying that the "risk-reward [is] significantly skewed to the downside".
Ladbrokes advanced after the UK operator of betting shops reported a 1.6% increase in first-half revenue to £577.8m. The company forecast a return to growth in the second half of the year after pre-tax profit dropped in the first six months.
Serco Group was a high riser as the outsourced-services provider said Aggreko's Angus Cockburn will take over as chief financial officer.
Henkel declined as the German maker of Loctite glue and Persil washing detergent said earnings growth will slow in the second half, reflecting the impact of crises in Ukraine and the Middle East.
The euro fell 0.19% to $1.3359.
Brent crude futures dropped 1.4% to $103.18 per barrel, according to the ICE.