Picture used for illustrative purpose. File

European shares fell on Tuesday as investors worried about escalating U.S.-China tensions and a resurgence in regional coronavirus cases, knocking shares of growth-sensitive cyclical sectors lower.

The pan-European STOXX 600 index fell 0.5% by 0713 GMT, with banks, energy firms, insurers and automakers falling between 0.8% and 0.9%.

Asian stocks made cautious gains after the Trump administration said it will tighten curbs on China's Huawei Technologies Co, to crack down on its access to commercially available chips, while ratcheting up tensions with Beijing. 

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UK-listed miner BHP Group, slipped 2.2% as it reported a 4% drop in annual profit that also missed analysts' estimate. It also warned that most major world economies except China will have to bear the brunt of a coronavirus-led downturn this year.

Danish Jewellery maker Pandora tumbled 5.9% as it said the number of closed shops increased slightly in August, and the current level of store traffic is "well below" the level before the lockdowns.

Britain's Marks & Spencer rose 1.8% after it revealed plans to cut a further 7,000 jobs, dealing the latest blow to the beleaguered retail sector from the COVID-19 crisis.

Reuters