European equities opened lower

European equities opened lower Tuesday, in the wake of declines in U.S. and Asian markets, with HSBC's announcement of major restructuring efforts a key focus for markets.

The pan-European Stoxx Europe 600 index opened 0.2 percent lower.

Market attention in the U.K. and beyond is likely to focus on HSBC's investor day in London today. In a filing to the Hong Kong stock exchange, HSBC said it plans to cut costs by as much as $5 billion within two years, laying off as many as 25,000 staff and shrink its risk weighted assets by about $290 billion. It also plans to sell its Turkey and Brazil operations and increase its investments in Asia.

"We recognize that the world has changed and we need to change with it," the bank's chief executive, Stuart Gulliver, remarked in the statement.

Shares of HSBC initially rose slightly at the open but were soon trading down 0.7 percent on the FTSE making it almost the worst performer on the index - although that accolade was held by Diageo.

The best performer on the index was Reed Elsevier, after Barclays raised the stock's price target.

Elsewhere, Greece continues to rattle sentiment. The country's international creditors have suggested extending the country's bailout program until the end of March 2016, but disagreements over the conditions attached to the continued support and what would happen afterward risk undermining that plan, three people familiar with the negotiations told Reuters Monday.

In Asia, equities turned lower Monday, as downbeat inflation data from China and the prospect of higher U.S. interest rates sooner rather than later weighed on sentiment.