European bourses tracked modestly lower midday Tuesday as traders weighed high crude prices and bond yields, and awaited clarity on Middle East hostilities.

Property stocks led gains on continental trading floors, while food, bank and oil shares lagged.

European bank shares followed US peers lower, after Bank of America (BAC) Chief Executive Brian Moynihan reportedly said Monday that the company's investment banking fees will likely drop by at least 10% in Q3, and quarterly sales and trading revenue will be flat, while speaking to a financial-industry conference.

Brent crude oil traded at $106.15 per barrel in midday action, up 0.4%.

Yields on benchmark 10-year German bonds held firm, near 3.53%, testing highs last seen during the Global Financial Crisis 2008-2009.

Investors also eyed Wall Street futures flashing red, and lower closes overnight on Asian exchanges.

In economic news, Germany's ZEW Economic Sentiment Index rose modestly to 34.7 in September from 34.2 last month, reported the Center for European Economic Research.

The pan-continental Stoxx Europe 600 Index was off 0.1% mid-session.

The Stoxx Europe 600 Technology Index was up 0.1%, and the Stoxx 600 Banks Index lost 0.4%.

The Stoxx Europe 600 Oil and Gas Index eased 0.4%, while the Stoxx 600 Europe Food and Beverage Index declined 1%.

The REITE, a European REIT index, rose 0.5%.

On the national market indexes, Germany's DAX was little changed, and the FTSE 100 in London lost 0.2%. The CAC 40 in Paris was down 0.2%, but Spain's IBEX 35 lifted 0.1%.

The Euro Stoxx 50 volatility index was up 1.2% at 19.62, indicating modestly below-average volatility for European stock markets in the next 30 days, a mildly positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.