European markets ticked lower on Tuesday after a volatile day of trade, which saw investors dip their toes back into the market to buy defensive stocks.

After its biggest drop since 1987, the FTSE Eurofirst 300 ended the day 0.1 per cent lower at 1,003.51, erasing earlier gains following the US Federal Reserve’s creation of a facility to buy commercial paper in another bid to unfreeze credit markets.