European stock markets wilted on Tuesday after a strong finish the previous day, in line with the Wall Street opening, on a downward revision to US third quarter growth figures.

The slide in Europe and the United States followed a weaker performance by equities in Asia, where sentiment was dampened by deflation fears in Japan and concerns over bank liquidity in China.

In London the FTSE 100 index shed 0.59 percent to close at 5323.96 points while in Paris the CAC 40 fell 0.75 percent to 3784.62. The Frankfurt Dax slipped 0.55 percent to finish at 5769.13.

Elsewhere there were losses of 0.20 percent on the Swiss Market Index, 1.08 percent in Milan, 0.30 percent in Madrid and 0.75 percent in Brussels.

US stocks traded lower after the government issued a downward growth revision amid low consumer confidence.

The Dow Jones Industrial Average was down 0.52 percent at 10,396.23 at mid-day, a day after the blue chip index rebounded from a three-session losing streak to post its highest close since October 2008.

The tech-heavy Nasdaq had fallen 0.64 percent to 2162.16.

Stocks declined from the opening bell as the market digested fresh government data showing gross domestic product (GDP) in the July-September period expanded 2.8 percent rather than the initial estimate of 3.5 percent.

Despite the revision, the report showed the first expansion for the economy after four straight quarters of contraction, including a 0.7 percent drop in the second quarter.

"The disappointment in the revision is that it shows the US economy, while growing, is still growing below its potential, which is not a positive consideration as far as prospective job growth is concerned," said Briefing.com's analyst Patrick O'Hare.

Analysts at Charles Schwab & Company cited personal consumption in the data, which was smaller than initially reported and "short of expectations."

They also said that inflation readings came in below forecasts, which might have dampened some hopes that the Federal Reserve was close to beginning to tighten its monetary policy to stave off an overheating of the economy.

Separately, the Conference Board, a key research firm, said that US consumer confidence rose slightly in November after two months of declines but remained mired in the doldrums.

In Paris losses were limited by a report that German business confidence, as measured by the Ifo institute, surged in November, fuelling hopes that Germany, Europe's economic powerhouse, could lead the continent out of recession.

Banks were hit by profit taking, with Societe Generale giving up 3.23 percent and BNP Paribas 2.63 percent.

In Frankfurt the industrial conglomerate MAN continued to suffer from the surprise departure Monday of its head, Hakan Samuelsson, who had been in the post for nearly five years.

MAN shed 1.27 percent on the day as investors fear his departure will prevent the group's integration into auto maker Volkswagen, its leading shareholder, according to Dow Jones Newswires.

On Tuesday, Tokyo's benchmark Nikkei-225 index finished down 1.0 percent, dragged by concerns about deflation, or falling prices, which have clouded recovery prospects in Asia's number one economy.