Most of the European markets fell Tuesday but investors remained cautious with the hope that the central banks all over the world would soon announce stimulus measures to tackle the weakening global economy.
The German DAX 30 index was marginally down 0.09 percent or 5.91 points to 6768.15. Shares of Siemens AG dropped 0.46 percent and those of Volkswagen AG fell 0.51 percent.
The French CAC 40 index fell 0.63 percent or 21.06 points to 3299.65. Shares of Credit Agricole SA declined 3.27 percent and shares of BNP Paribas SA dropped 1.92 percent.
London's FTSE 100 index was down 0.21 percent or 11.98 points to 5681.65. Shares of BP PLC fell 3.42 percent and shares of CRH PLC were down 1.38 percent.
Spain's IBEX 35 rose 0.16 percent or 10.80 points to 6812.60. Shares of Bankia SA climbed 3.26 percent and those of Inditex SA advanced 1.44 percent.
Market players are expecting an announcement of a monetary stimulus policy by U.S. Fed. Earlier in the month, Federal Reserve Chairman Ben Bernanke underlined that the Fed remained prepared to take action as needed to protect the U.S. financial system if the financial stresses were to escalate.
European Central Bank President Mario Draghi hinted last week that the bank might restart sovereign bond purchases under its Securities Market Program (SMP). This also raised market players' expectations that policy makers in Europe would ensure implementation of measures to rejuvenate the euro zone economy and support growth.
Market players are also hoping for an announcement of the stimulus measures by the ECB as investors feel that bold measures, including easing in the monetary policy, will give a much-needed thrust to boost liquidity in the European financial system.
Market participants sense that the euro zone crisis is also taking its toll on the rest of the world with activity slowing down in all major economies in the second quarter, including the U.S., China and Japan. This has resulted in investors sensing an urgent announcement of monetary easing measures from policymakers around the world to regain the growth momentum.