European shares closed modestly higher Monday, but gave up beefier gains as oil prices retreated and worries about next month's constitutional referendum weighed on Italian stocks. European equities started Monday in rally mode, with exporters getting a boost as the euro fell, still feeling the effects of Donald Trump's U.S. presidential election win last week.

The Dow Jones Industrial Average edged up to a record-high close on Monday even as the broader stock market came under pressure, with investors seeking more clarity on the policy proposals of President-elect Donald Trump's administration. "It makes sense that stocks took a breather today, as they wait for more concrete plans from the Trump administration," said Kristina Hooper, U.S. investment strategist for Allianz Global Investors.

Asian markets showed resilience Tuesday to the emerging-markets selloff that had been hitting global markets, with shares broadly mixed and Asian currencies gaining some strength.