(MENAFN- AFP) European stock markets fell on Tuesday after another plunge on China's main index, and on the eve of a German vote on Greece's new bailout.
London's benchmark FTSE 100 index dropped 0.62 percent to stand at 6,509.79 points around midday in the capital.
Frankfurt's DAX 30 edged down 0.07 percent to 10,932.25 points and the CAC 40 in Paris shed 0.25 percent to 4,972.37 compared with Monday's close.
Athens' main index slid 1.43 percent to 671.21 points.
The euro fell to $1.1061 from $1.1078 late in New York on Monday.
Sterling meanwhile climbed strongly against both the euro and dollar on data showing British inflation ticked up from zero in July -- supporting expectations of a rate hike from the Bank of England in the first half of next year.
Investors were "keeping tabs on Asian markets," said Brenda Kelly, head analyst at traders London Capital Group.
"Yesterday's US data was also something of a mixed bag with a better-than-expected homebuilder index helping to negate a fairly weak manufacturing print."
On Tuesday, the Shanghai index closed down 6.15 percent on broad worries over the slowing Chinese economy and the government's commitment to prop up shares, dealers said.
Elsewhere, Thai stocks notched their steepest decline this year, and the baht slid to its lowest level versus the dollar since 2009 after a bomb attack Monday killed at least 20 people and injured scores in Bangkok.
In Europe, official data showed that Britain's annual inflation rate rose to 0.1 percent in July.
Markets are scrutinising inflation data -- which has been kept low of late by falling energy and food prices -- for indications of when the Bank of England may start raising its key interest rate from the current record-low level of 0.50 percent.
The US Federal Reserve, meanwhile, is expected to start hiking its near-zero rate before the end of the year.
In reaction to Tuesday's data, the British pound jumped to $1.5670 from $1.5586 on Monday.
"A Fed rate hike for either September or December is largely priced in now, so the dollar may struggle to gain further ground going forward, especially against some of the stronger currencies like the pound," said Fawad Razaqzada, analyst at Forex.com.
Market focus was fixed also on Greece, on the eve of a German parliamentary vote to approve the new bailout to Athens.
As Europe's biggest economy and contributor to Greek aid, Germany plays a key role in the emergency package approved by eurozone finance ministers worth up to 86 billion euros ($96 billion).
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