U.S. inflation print causes European stocks to close lower, particularly banking stocks, with Deutsche Bank experiencing a 9% decline.

• On Monday, it was reported that a significant investor had sold substantial shares in Germany's two largest banks, Deutsche Bank and Commerzbank.
• The conflict in Ukraine has led to fluctuations in oil and commodity markets, resulting in stock market instability.
• The U.K. Foreign Secretary Liz Truss stated that her government is working "urgently" to verify the details of an alleged chemical weapons attack in the Ukrainian city of Mariupol.

European markets ended lower on Tuesday due to bank sector selling and U.S. inflation data, while anticipating central bank meetings.

The pan-European provisionally ended 0.3% lower after clawing back some earlier losses.

On Monday, reports emerged that an unidentified investor had sold significant holdings in Germany's largest banks, causing the DAX to decline 0.5% and the banking sector to fall 1.5%.

The sale of 116 million shares of Deutsche Bank and 72.5 million shares of Commerzbank, which amounts to more than 5% of the two German banks, resulted in a 9.4% decline in Deutsche Bank's shares and an 8.5% decline in Commerzbank's shares. Despite the decline, Deutsche Bank stated in a statement that it remains "confident in our strategy."

BlackRock Fundamental Equities' co-chief investment officer, Nigel Bolton, advised traders to monitor large investor flows instead of focusing on individual stock news.

European banks are currently appearing cheap in the equity markets, according to the speaker on CNBC's "Squawk Box Europe."

If you observe rising rates but don't expect a recession in the near future, then these options may seem appealing, according to him.

U.S. inflation

On Wall Street, U.S. stocks increased as the March consumer prices report revealed that inflation excluding volatile food and energy costs was slightly lower than anticipated. A decline in rates tends to stimulate stock growth.

This week, earnings season commences in the US, with major banks such as JPMorgan, Goldman Sachs, Wells Fargo, Citi, and Morgan Stanley scheduled to release their reports.

In Europe, investors will closely monitor events in Ukraine. The Russian invasion of the country has led to fluctuations in oil and other commodity markets, which have affected stock prices.

The U.K. Foreign Secretary Liz Truss stated that her government is working "urgently" to verify the details of an alleged chemical weapons attack in the Ukrainian city of Mariupol.

On Thursday, European Central Bank policymakers will gather in Frankfurt to debate their next monetary policy decision, as they grapple with the challenge of balancing rising consumer prices with the negative impact of the war in Ukraine on economic growth.

Since 2019, the U.K.'s jobless rate has decreased to its current lowest level, as shown by employment figures.

— CNBC’s Elliot Smith contributed to this article.