Chinese shares closed lower on Tuesday following overnight losses on the U.S. and European markets. The benchmark Shanghai Composite Index dropped 1.40 percent, or 32.48 points, to 2,293.34. The Shenzhen Component Index lost 1.44 percent, or 134.34 points, to 9,208.03. Combined turnover on the two bourses stood at 206.7 billion yuan (33.18 billion U.S. dollars). Investors are worried that liquidity may weaken in domestic and overseas markets, said Mao Changqing, an analyst with CITIC Securities. The coal sector dropped by 2.35 percent. China Shenhua Energy Co., the country's largest coal producer, retreated 1.72 percent to 22.28 yuan per share. Most heavyweights plummeted. PetroChina Co., the country's largest oil producer, went down 1.33 percent to 8.89 yuan per share. Sinopec, the country's largest oil refiner, sunk 0.56 percent to 7.13 yuan per share. Industrial and Commercial Bank of China Ltd., the country's biggest listed lender, dropped 0.97 percent to 4.10 yuan per share. China Construction Bank Corp., the nation's second-largest bank, shrank 0.87 percent to 4.58 yuan per share.European stocks fell sharply on Monday over uncertainties about the Italian parliamentary election, which may disrupt the country's fiscal reform and reignite the debt crisis in the euro area. Meanwhile in the United States, only three days are left for the Republicans and the Democrats to negotiate a way to avoid automatic spending cuts before they come into effect on March 1.