European shares edged lower on Tuesday as losses in heavyweight banks, surging oil prices and rising global bond yields reduced risk appetite ahead of the U.S. Federal Reserve's monetary policy decision later this week. The pan-European STOXX 600 fell 0.4% to 633.3 points at 0707 GMT, while banks dropped 1.3% and most major regional bourses also declined. Healthcare and travel and leisure were the only main STOXX 600 sectors to rise. Oil-related inflation concerns, driven by escalating Middle East tensions, strengthened expectations that central banks worldwide could raise interest rates this year. The benchmark U.S. 10-year Treasury yield reached 5% on Monday for the first time since October 2023, while traders increasingly priced in a 25-basis-point rate increase by the Fed. The European Central Bank raised rates for a second time last week. Deutz fell 4.5% after offering up to 10% of its shares in a capital increase.