European Shares Mixed In Cautious Trade

European shares were trading mixed on Tuesday after two consecutive sessions of gains.

Italian politics remained a key focus as Prime Minister Giuseppe Conte faces a no-confidence vote in parliament after hard-line Interior Minister Matteo Salvini pulled the plug on the shaky populist coalition.

Traders also remained focused on the minutes of the U.S. Federal Reserve's last meeting due out on Wednesday as well as Fed Chair Jerome Powell's speech at the Jackson Hole symposium on Friday for policy direction.

The pan European Stoxx 600 was down 0.1 percent after rising 1.1 percent in the previous session.

The German DAX was marginally lower, giving up early gains, while France's CAC 40 index was little changed with a positive bias and the U.K.'s FTSE 100 was rising 0.4 percent.

Brexit jitters weighed on the pound after U.K. Prime Minister Boris Johnson reaffirmed his position that the EU would need to compromise for a Brexit deal to happen.

Danish jewelry manufacturer Pandora A/S surged 6.5 percent after backing its full-year guidance.

British drugmaker AstraZeneca advanced 1.6 percent as it reported positive results from the Phase III DAPA-HF trial, the first heart failure outcomes trial with an SGLT2 inhibitor in patients with and without type-2 diabetes.

Mining giant BHP fell around 1 percent after a warning about future demand.

In economic releases, Eurozone construction output remained unchanged in June after easing for three straight months, Eurostat reported.

Production was flat after decreasing 0.5 percent in May and 1.5 percent in April.

German employment increased in the second quarter largely due to the growth in outdoor work in spring, data from Destatis showed.

Employment increased by seasonally adjusted 50,000 or 0.1 percent sequentially in the second quarter.