European stocks inched lower on Tuesday, dragged by financials after Qatar Holding cut its stake in Barclays, while investors maintained caution ahead of key economic data due later in the day.

The pan-European STOXX 600 index eased 0.1% by 8:12 GMT.

Barclays dropped 3.3% after one of its largest shareholders Qatar Holding moved to sell around 510 million pound ($644 million) of its stock. The broader financial services sector was down 0.4%.

Basic resources were the top decliners, losing 0.7% as they tracked lower base metal prices.

Eurozone and U.S. business activity data for November, as well as October producer prices in the eurozone are scheduled for release later in the day.

Meanwhile, bond yields fell sharply in early trade after European Central Bank official Isabel Schnabel said further interest hikes are "rather unlikely", after an unexpectedly big fall in inflation.

(Reporting by Khushi Singh in Bengaluru; Editing by Nivedita Bhattacharjee)