European stocks fell slightly on Tuesday, ending a five-day winning streak. The decline in energy stocks overshadowed recent optimism about the Federal Reserve's interest rate cut. The European Stoxx 600 index closed down 0.5% as falling oil prices hit energy stocks and bank stocks fell.

Germany's DAX fell 0.3%, snapping its longest winning streak since 2014. Risk assets around the world took a hit earlier this month as investors worried about a slowdown in the U.S. economy, with expensively valued stocks such as technology shares hit particularly hard.

In Europe, a recovery in more defensive sectors such as telecoms and healthcare helped the Stoxx 600 rebound and put it on track for a record high. "Generally speaking, it's healthy for markets to experience a little dip from time to time, and it just reminds people that markets are not an escalator, it's not going to go up and up," said Michael Field, European market strategist at Morningstar.