European shares fell in early trade on Tuesday, adding to the previous session’s pull-back as data showing French business activity contracting again in September rattled investors.

Shares in Raiffeisen Bank International featured among the top losers, down 10 per cent after the Austrian lender said hits from Ukraine and Hungary will likely push it to its first-ever annual loss in 2014.

At 0706 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 per cent at 1,388.32 points, after losing 0.6 per cent on Monday.

Markit said its preliminary composite purchasing managers index for France, covering activity in both the services and manufacturing sectors and covering around two-thirds of the economy, eased to 49.1 this month from 49.5 in August.

That marked the weakest level of activity in three months and brought the index further below the 50 point line that separates expansions in activity from contractions.

Investors also awaited similar data for Germany and the euro zone due later.

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