French stocks were slightly lower on Tuesday amid rising inflation expectations and concerns over U.S. fiscal deficit.
With about two weeks left before the Nov. 5 election, Treasury yields remained elevated on concerns about the path of the U.S. deficit regardless of which candidate wins the race for the White House.
The benchmark CAC 40 was down 21 points, or 0.3 percent, at 7,515 after falling around 1 percent the previous day.
Banks BNP Paribas, Credit Agricole and Societe Generale were down between half a percent and 0.8 percent.
Automaker Renault was moving higher even as industry data showed Europes new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy.
New car sales decreased 6.1 percent in September from a year ago, according to data published by the European Automobile Manufacturers Association.
However, this was much slower than the 18.3 percent fall posted in August.