On Tuesday, European shares fell after rating agency Moody's put the triple-A rating of the United Kingdom in jeopardy for the first time. The ratings agency also warned that it might cut ratings of France and Austria as well and downgraded six euro zone nations including Spain and Italy.

Investors expressed concerns about whether the European Union and the International Monetary Fund would accept the fresh austerity cuts approved by the Greek parliament needed to avoid a chaotic default.

"Moody's UK warning is not great for the market, and investors do take notice if France gets cut as it could impact its ability to raise capital," said Andrea Williams, who manages $2.1 billion for Royal London Asset Management.

"Greece is still in the background and with all the austerity cuts which are happening in Europe it just goes to show how much the economies are suffering."

Banks of France that have exposure to euro zone sovereign debts were among the worst performers, with BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA) and Credit Agricole (CAGR.PA) down 2.1 to 2.8 percent. The pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 0.3 percent at 1,068.35 points by 0806 GMT.