European shares fell in early trading on Tuesday, with French advertising group Publicis sliding on concerns of losing some contracts.

Shares in Publicis fell 2.9 per cent. Traders attributed its decline to a report in the Financial Times that it had lost some US accounts with Procter & Gamble, while a price target cut on Publicis' shares by analysts at Bernstein also weighed on the stock.

Anglo American shares also fell around two percent to feature among the top decliners in Europe after the miner suspended its dividend for some quarters and said it will consolidate from six to three businesses.

The pan-European FTSEurofirst 300 index was down 0.7 per cent at 0825 GMT.

Bouygues outperformed the weaker markets to rise more than 4 per cent on a Bloomberg report that Orange is in talks to buy some assets from Bouygues.

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