European markets fell Tuesday as hopes dimmed for a positive result in high-level trade talks between the U.S. and China.

The pan-European Stoxx 600 fell 0.97% to 378.71 by the close with construction, retail and travel stocks plunging more than 1.7% as all sectors and major bourses traded in the red.

Hopes for significant progress took a hit on Monday after the U.S. Commerce Department blacklisted 28 Chinese companies over alleged involvement in the abuse of ethnic Uighurs in China's Xinjiang province.

Tensions between Washington and Beijing were further strained by controversy over a tweet from the general manager of the Houston Rockets in support of pro-democracy protests in Hong Kong, which was rebuked by the National Basketball Association following a furious backlash from mainland China.

Source : MarketWatch