European shares fell on Tuesday, throwing a rally in the U.S. and Asia into reverse, and the euro dipped towards nine-month lows against the dollar as reports a Russian aid convoy was heading to Ukraine ratcheted up tension between Kiev and Moscow, Reuters reported. The FTSEurofirst 300 index fell 0.2 percent at 1,320.14 points, giving up a 1.3 percent gain on Monday. The euro was down 0.2 percent at $1.3366, heading towards nine-month lows hit last week. Russian shares traded mixed after strong gains on Monday. The dollar-denominated RTS index was flat while the rouble-based MICEX rose 0.5 percent. The rouble was 0.41 percent weaker against the dollar at 36.07 However, the price of oil fell on Tuesday, with Brent dropping more than $1 to below $104 a barrel. The dollar edged higher against other major currencies, helped by a slight rise in U.S. Treasury yields, though the geopolitical tensions that have dominated financial markets in recent weeks were expected to restrict gains. The U.S. currency edged up 0.1 percent to 102.25 yen, having hit a two-week low of 101.51 yen on Friday. U.S. 10-year Treasury notes yielded 2.43 percent, up a shade from New York closing levels. Gold held steady at about $1,308 an ounce.
