Most of the markets across Europe will remain shut on Tuesday for New Year's Eve. Some of the markets in the region, including the U.K. and France, will have short sessions with the markets closing early afternoon.
Markets in Switzerland and Germany are closed for New Year holidays.
With no significant data due for the day and a holiday ahead for New Year, activity is likely to remain subdued.
On the Brexit front, Phil Hogan, the EU trade commissioner has reportedly said Boris Johnson will be forced to U-turn on his refusal to extend the post-Brexit transition period beyond the end of 2020, and branded it a "stunt".
Hogan warned the prime minister his "have our cake and eat it" rhetoric would be exposed as false once the hard reality of the negotiations bites in the new year.
On Monday, the pan European Stoxx 600 declined 0.85%. The U.K.'s FTSE 100 shed 0.76%, Germany's DAX declined 0.66%, France's CAC 40 ended down 0.91% and Switzerland's SMI lost 1.06%.
The major U.S. averages too ended weak. While the Dow fell 183.12 points or 0.6% to 28,462.14 and the Nasdaq dropped 60.62 points or 0.7% to 8,945.99, the S&P 500 slid 18.73 points or 0.6% to 3,221.29.
Asian stock markets are weak on Tuesday, tracking cues from Wall Street, as investors booked profits amid thin holiday trading ahead of the new year. Some of the markets in the Asian region are closed for New Year's Eve, while some have shortened trading sessions.